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True cost of DOE Sizwe Africa IT deal surfaces

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Dear MyPE

The Eastern Cape’s Education Department has revealed that the controversial contract with Sizwe Africa IT Group is worth more than double the R160 million they initially presented, costing the department over R400 million!

Not only is the cost more than double, but it has also been revealed that the 55,000 tablets and related products being supplied, would be leased, and that after the 36 month deal expired, these would have to be returned to the company.

This is also four times more than the original Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) tender, and flies in the face of the relevant Treasury guidelines.

These revelations came during the Education Portfolio Committee meeting held on Thursday, 16 July 2020, following continued pressure from the Democratic Alliance, to respond to questions relating to the controversial piggyback deal, handed to the Iqbal Surve-linked company.

In a written response to questions from the Portfolio Committee, Superintendent General, Themba Kojana, revealed the individual prices quoted for the tablets and accessories that are part of the contract.

The unit cost quoted for a Samsung Galaxy Tab A 8 inch tablet is given as R5,396.40. The same tablet sells for R3,279 on Takealot. Based on this value, the department would save R2,115.40 per tablet, which translated to in excess of R116 million savings on the tablets alone, if they purchased them on the open market. The same Samsung tablet could have been purchased as a Wi-Fi only option, together with a 4G router, at an even lower cost of just R2,400, or close on R165 million in savings.

In procuring the tablets themselves, the Department would also actually own the asset, and not have to give them back after three years.

The unit cost quoted for a screen protector and ruggedized pouch, is R1,098, whilst the same is available for R768 from Takealot. This is a further saving of R330 each, or more than R18 million savings over 55,000 units.

SG Kojana also revealed that the request to piggyback on the DEDEAT deal was put through on 12 August 2019, purportedly to accelerate delivery. It then took over nine months to finalise, with the first tablets only being distributed last month.

Had this gone out to tender, the entire process could have been concluded within three months, and the competitive bidding process, handled correctly, would have resulted in a value for money deal for the department.

The Democratic Alliance is now in the process of laying a complaint with the Public Protector, against MEC for Education, Fundile Gade, Superintendent General, Themba Kojana, and the Department of Education in relation to the Sizwe Africa deal.

The DA will not stand for corruption for any reason. Those responsible for allowing this deal to be approved have a lot to answer for!

Regards

Yusuf Cassim, MPL
DA EC Shadow MEC for Education

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