East London – The Hawks, South Africa’s Directorate for Priority Crime Investigation, have launched a full-scale investigation into a R330 million settlement agreement between the Eastern Cape Department of Education and Sizwe Africa IT Group, a company owned by Reverend Vukile Mehana, the deputy chaplain of the African National Congress (ANC).
The investigation follows allegations of corruption surrounding the payment, which has raised serious questions about transparency and due process within the provincial government.
The settlement relates to a cancelled R538 million contract awarded in 2019 to Sizwe Africa IT Group (through its subsidiary Ayo) to supply 55,000 tablets to matric pupils. This three-year lease agreement, costing nearly R240 per pupil monthly, was interdicted by the State Information Technology Agency (SITA) due to concerns over its procurement process. SITA argued that it had not been involved in the procurement, leading to legal action that remains unresolved.
Despite the ongoing legal challenge, the Eastern Cape Department of Education proceeded to negotiate a settlement with Sizwe Africa IT Group. This settlement, amounting to over R330 million, paid in two installments of R98 million and R232 million on April 25th and May 26th, 2022 respectively, is now the subject of the Hawks’ investigation.
The investigation was triggered by allegations of corruption, particularly focusing on the relationship between the head of the Eastern Cape Department of Education, Naledi Mbude, and Reverend Mehana. Sources claim that Mbude expedited the settlement agreement for personal gain. One source stated: "The way this was done was suspicious from the beginning. She wanted to close the chapter very fast, knowing that she’d benefit either way."
Adding to the suspicion, Mehana and Mbude were married in a lavish ceremony shortly after the settlement payments were made. Reports suggest the wedding cost millions of rands. A source revealed: “Mehana and Mbude were engaged at the time of the payment of the second settlement. She was also the accounting officer who oversaw everything for the department.”
This source further alleges that Mbude failed to declare her personal relationship with Mehana before or after the tender was awarded. Another source confirmed: “When the department was negotiating the settlement after the tender had been cancelled, the two were already engaged.”
The settlement reportedly caused a major rift between Mbude and her superiors, resulting in her suspension in April 2022. Mahlubandile Qwase was subsequently appointed as acting head of department by Eastern Cape Premier Oscar Mabuyane.
The Hawks’ involvement intensified last month with the department receiving a letter outlining seven key areas of inquiry. The letter, referencing the settlement agreement (contract number: PP09-14/15-16), specifically requested documentation related to both payments, including all correspondence between Mbude and Sizwe Africa IT Group. The Hawks also sought details about any potential discounts offered by the IT firm to expedite the settlement and questioned the decision to make two large payments instead of monthly installments as stipulated in the original contract.
The letter reads: "The participation contract was a rental contract, with rentals expected to be paid at the end of each month. Why were the rentals not paid at the end of each month [and, instead,] make two global payments?"
The Hawks also requested Mbude's declarations of interest for the 2020/21, 2021/22, and 2022/23 financial years and a list of all officials involved in the process. The department was given a deadline of November 15th to provide all requested documents.
The Eastern Cape Department of Education spokesperson, Mali Mtima, declined to comment, citing the ongoing Hawks investigation and the sub judice nature of the matter. At the time of publication, Sizwe Africa IT Group, Reverend Mehana, and Ms Mbude had not responded to requests for comment.
