KZN education finance manager keeps job despite suspended PPE jail sentence

A recently sentenced finance manager who failed to disclose links he had with a company that received a R1.2m Covid-19 personal protective equipment (PPE) tender with the department of education (DoE) in KwaZulu-Natal has kept his job while the department conducts its own disciplinary process.

Last week the Durban Specialised Commercial Crime Court sentenced Lungelo Stewart Mhlongo to two years' imprisonment, suspended for five years on condition he is not found guilty of the same offence during the period of suspension.

Special Investigating Unit (SIU) investigations found in 2020 Mhlongo failed to inform the department he had an interest in a PPE service provider which had secured two contracts for the supply and delivery of spray pumps to the value of more than R1.2m from the department. He was convicted for contravention of the Public Administration Management Act. 

KwaZulu-Natal DoE spokesperson Muzi Mahlambi confirmed to TimesLIVE Mhlongo was still employed by the department, and said it had started internal disciplinary proceedings in the matter. 

Mahlambi said the department welcomed the judgment, adding “this will serve as a deterrent to other officials that such acts will not go unpunished”.

He declined to say when the disciplinary process would be concluded.

Mhlongo was linked to the Bulum Trading company that received two PPE contracts worth R1.2m.

According to the provincial government 2020 Covid-19 expenditure report, the company  scored a tender for R586,500 for supplying 300 16-litre spray pumps at a cost of R1,955 each. 

SIU spokesperson Kaiser Kganyago told TimesLIVE Mhlongo was also linked to a company named Amakhono Capital. The SIU found the company was unlawfully awarded a R3.6m tender by the education department.  

“The evidence revealed the officials failed to exercise due diligence in processing the bid documents with a postdated BBBEE affidavit, or for receiving and processing the BBBEE affidavit after the closing date which ought to have rendered Amakhono non-responsive.

“As a result, Amakhono should not have been awarded the contract valued at more than R3.6m,” the report read.  

Amakhono Capital was awarded the first contract to supply the education department with 1,000 16-litre  pump sprays  at a cost of R 2,070 each.  

The SIU detailed that Amakhono Capital was among companies that signed for under delivery of goods supplied, overcharging the department for VAT and for profits derived as a result of an irregular procurement process.  

Kganyago said Mhlongo contravened the following:  

• Failed to disclose his interests with the service provider.  

• Was party to a contract with a service provider that was conducting business with the state while still an employee of the KZN DoE.  

• Failed to disclose his financial interests and/or benefits as a cardholder of the service provider’s business account to the dead of department of the KZN DoE.  

This is the second PPE crime sentencing this month.  

Former Eastern Cape health messenger Ayanda Matinise was sentenced to 10 years in prison for PPE tender fraud to the value of more than R23m.

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