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Computer cut for Dinaledi schools

Farzana Rasool
By Farzana Rasool, ITWeb IT in Government Editor.
Johannesburg, 03 Aug 2012

The Mpumalanga Department of (MDOE) has had to cut the number of computers for Dinaledi schools.

“Invoices in the DA's possession show how EduSolutions pocketed R402 896 in 'handling and management fees' for computers purchased for Dinaledi schools in Mpumalanga,” claims DA Mpumalanga education spokesperson James Masango.

EduSolutions has been at the centre of the Limpopo textbook debacle. There have also been allegations of links between the company and the ruling party, raising questions about whether it was the firm's political connections that led to it receiving a number of state contracts.

There are 500 designated Dinaledi schools across SA. The primary objective of the Dinaledi project is to ensure these schools are supported to significantly increase the participation and performance of learners in mathematics and physical science, with the aim of ultimately increasing the number of students entering the engineering and ICT fields.

1 300% mark-up

Masango says the Dinaledi schools were forced to cut the number of computers bought by 13%. “Besides the massive benefit for EduSolutions from this deal, schools were charged R1.7 million for 175 computers - far higher than competitive prices for bulk IT purchases.

“This is the latest in the long history of over-charging schools and education departments. Back in 2007, when Angie Motshekhga was still Gauteng education MEC, EduSolutions was charging schools R13 a pencil, a mark-up of 1 300%.”

He adds that the original Mpumalanga tender agreement saw EduSolutions appointed as middleman to procure and distribute textbooks and other learner teacher support materials, and receive an 8% handling fee of the full invoice amount. In March, the agreement was amended to include an additional 15%.

The potential “losses” suffered by the education department will run into millions during the three-year contract period, which could instead be used to purchase and deliver crucial learning material for schools, adds Masango.

“The last thing this province needs is for a losing bidder to file suit against the department, costing taxpayers millions in legal fees.”

Sound system

MDOE spokesman Jasper Zwane says the number of computers was reduced, but not due to overcharging. “What I can confirm is that all the schools which were earmarked to receive computers received them and that the numbers were reduced because of the computer price increases based on the rand-dollar exchange rate at the time and after the purchase order was issued.”

He adds that EduSolutions only helped the department with the warehousing and distribution of these computers to schools and had nothing to do with the cost increase.

“The departmental financial management systems are very sound and we can confirm that there were no irregularities in the management of this process. The department will be in a position to respond directly to the Democratic Alliance should they request us to do so.”

Mateli Mpuntsha, executive director of EduSolutions, says it is imprudent for EduSolutions to become involved in political mud-slinging in Mpumalanga.

“While we cannot comment on the specifics of the DA's allegations around the procurement of computer equipment, as we are bound by confidentiality clauses in our contract with the Mpumalanga Department of Education, we are confident that our processes are above board and will withstand any scrutiny,” he notes.

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