3 May 2007
A progress report on the forensic investigation into the scholar transport
routes that was commissioned by the Executive Council last year has been
completed by the Department of Education. The investigation covers the period
2001 to 2006. The report indicates the work that was covered which includes the
review and investigation of contracts and tenders to service providers for
scholar transport. This also includes the review, verification and
investigation of payments made to service providers by the Department of
Education. The progress report has identified serious fraudulent activities by
several officials in the Department of Education who were collaborating with
transport service providers, as well as the lack of compliance with service
level agreements.
The contents of the report confirmed the suspicions of Members of the
Executive Council on the possibility of maladministration with regards to the
management of the scholar transport. This has resulted in the unrealistic
skyrocketing of the scholar transport costs from the year 2002 to 2005.
The preliminary findings indicate that all the service providers currently
providing services for scholar transport to the department are either
performing these duties on extension letters or there is no authority for them
to continue with the contract.
Our initial verification of the routes indicates that the kilometres and
learners indicated on all the extension letters and / or contracts are
incorrect. All claims submitted and payments made to the service providers that
we have investigated are overstated as the claims are not for the actual
distance travelled by the learners.
The department will review all current extension letters and contracts with
service providers providing scholar transport to the department with the
possibility of terminating their contracts as soon as possible.
The initial investigation revealed that there appeared to be irregularities
on the part of staff relating to the awarding of extension letters to service
providers for the scholar transport contracts.
The department is considering requesting school principals to re-submit
applications for routes for learners who require scholar transport as per the
Department's guidelines for 2003.
The progress report goes on to make concrete recommendations on the way
forward. These include:
* The department must consider taking disciplinary action against staff
members who have transgressed the rules and regulations as per the previous
tender board and the Public Finance Management Act.
* Service providers that have red flags must be investigated further and where
transgressions or irregularities are found these are to be investigated to the
full extent with the view of possible criminal action and recovery of
overpayments.
* Service providers who have transgressed or committed irregularities are to be
blacklisted with the provincial government as per the supply chain management
regulations.
* Where service providers and / or staff members have transgressed government
rules and regulations of supply chain management action amounting to possible
criminal acts the Department must consider taking criminal action against the
respective service providers and staff members.
Members of the media I would like to re-emphasise that this is a preliminary
progress report. Further investigations are to be conducted as per the
recommendations of the forensic report. It will be my pleasure to reconvene
another media briefing with the tacit objective of ensuring that you are
constantly informed of developments on regular intervals.
There are service providers and staff members who have been identified but
we cannot provide their names as per the recommendations of the forensic report
there are further investigations that are to be conducted.
I will now take a few questions.
Thank you
Enquiries:
Hllhla Ngwenya
Cell: 082 308 9365
Issued by: Department of Education, Mpumalanga Provincial Government
3 May 2007
