United Democratic Movement
Parliamentary & Executive Correspondence
Request for urgent independent forensic investigation and Parliamentary oversight into nearly R4 billion in contracts and expenditure involving Khumzi Investments and the Eastern Cape Department of Education
Dear Auditor-General and Chairperson
I write to formally request the urgent intervention of the Auditor-General of South Africa and the Portfolio Committee on Basic Education concerning the reported award and expenditure of approximately R3.95 billion in contracts involving Khumzi Investments and the Eastern Cape Department of Education over a five-year period.
Recent media reports and information arising from parliamentary processes have raised serious questions regarding the scale, concentration, administration and value for money associated with this expenditure. Of particular concern is the reported figure of approximately R3.4 billion relating to travel and accommodation. The reported value of these contracts is extraordinary when considered against the persistent and well-documented challenges facing the Eastern Cape education system.
The figures demand urgent scrutiny. Information now in the public domain indicates that approximately R336.56 million was authorised through 1,317 payments to Khumzi Investments during 2025 alone. Separate payments reflect 96 payments to the company between 19 June and 8 July 2025, with a combined value of R12,514,307.30. These transactions must be properly reconciled against the relevant contracts, purchase orders, invoices, services rendered and payments made by the Department.
"The public purse cannot and must not become a source of luxury expenditure while children are denied basic educational necessities. Public money allocated to education must ultimately serve education and, above all, the learner."
The scale of the reported expenditure is particularly disturbing when viewed against the conditions under which many learners in the Eastern Cape continue to receive their education. There are children who continue to learn under trees. There are learners who must cross rivers and travel long distances simply to reach school. There are schools without adequate sanitation and infrastructure, schools that continue to face shortages of essential learning and teaching materials, and communities that continue to raise serious concerns about scholar transport and school nutrition.
Against this reality, the reported expenditure of billions of rands on travel and accommodation by an education department requires the highest possible level of scrutiny. Public money allocated to education must ultimately serve education and, above all, the learner. Every rand spent must be capable of being justified in terms of necessity, efficiency, effectiveness, economy and measurable public benefit.
Key Questions Warranting Parliamentary Oversight:
- Verification of Services: Who travelled, where they travelled, when they travelled, why they travelled, who authorised each trip, who approved the expenditure, what services were procured, and what tangible outcomes resulted.
- Internal Controls & Compliance: Whether all travel was supported by proper travel authorities, whether officials submitted post-travel reports, whether bookings were cancelled or duplicate payments occurred.
- Concentration Risk: Why such substantial expenditure was channelled through one single provider without genuine competition and transparent tender allocations.
- Irregular Urgent Directives: Circumstances surrounding instructions issued in the early hours of the morning requiring senior departmental officials to process R18.5 million in payments without customary pre-audits.
I therefore request that the Auditor-General consider undertaking an urgent special, investigative or forensic audit, within the scope of the AGSA's statutory mandate, into the contracts, expenditure and payments involving Khumzi Investments and the Eastern Cape Department of Education.
I further request that the Portfolio Committee on Basic Education urgently exercise its parliamentary oversight responsibilities in relation to this matter by summoning the relevant officials, including the MEC, Head of Department, Chief Financial Officer and supply-chain heads.
I request written confirmation of receipt of this correspondence and an indication of the steps that will be taken by both institutions.