Yasmin Bilal
The Special Investigating Unit (SIU) has finalised settlement agreements worth R25 million with several companies and individuals linked to controversial COVID-19 school decontamination contracts awarded by the Gauteng Department of Education.
The settlements stem from a 2022 Special Tribunal judgment that set aside contracts valued at R431 million for the disinfection, sanitisation and deep cleaning of schools during the pandemic.
The SIU said the agreements involve service providers connected to Chachulani Group Investment Holdings and related entities. Those who signed have committed to repay a combined R25 million, part of about R40 million previously paid out by the department.
Entities linked to the settlement include Muta Investment Holdings, Netvision Energy Savers, Psychin Consulting, Home Ground Trading 1105, Mpale Investments Holdings, Finds Energy Suppliers, Favoured Street Properties, Mozambula Group, Imani Portfolio Holdings, Twin Cam Trading, Naledzi Investment Trust, as well as several individuals and trusts.
According to the SIU, funds will be recovered through direct deductions from bank accounts and related investment structures. These include R707,892 from Chachulani Group Investment Holdings, R1,708,749 from Netvision Energy Savers, R1,684,639.91 from Mpale Investments Holdings, R8 million from Naledzi Investment Trust, and R12,898,728.09 from offshore unit trusts linked to the same structure.
Financial institutions have been ordered to transfer the settlement amounts to the SIU within seven days once the Special Tribunal issues the relevant order.
The investigation found that procurement processes at the Gauteng Department of Education deviated from standard supply chain rules during the early stages of the COVID-19 pandemic in 2020. Schools were closed in March that year and reopened in June under disaster management regulations, prompting urgent sanitisation measures.
Investigators found that service providers were sourced informally through databases, referrals and messaging platforms without involvement from the department’s Supply Chain Management unit. The SIU also found that pricing was not based on actual cleaning costs, with flat rates of between R250,000 and R300,000 applied depending on the type of facility.
The probe concluded that procurement was irregular, unfair and inconsistent with Section 217 of the Constitution, which governs public sector procurement. Senior officials reportedly acknowledged that required procedures were not followed.
The Special Tribunal previously preserved assets worth R27 million pending finalisation of the review proceedings.
The SIU said it will continue efforts to recover public funds and will refer any evidence of criminal conduct to the National Prosecuting Authority for possible prosecution under the Special Investigating Units and Special Tribunals Act, 1996.