DA will write to National Treasury requesting them to halt R100 million contract to EduSciMat
13 November 2017
The Democratic Alliance will write to National Treasury requesting them to intervene and advise the North West government not to extend a dubious EduSciMat contract by R100 million, as the company is currently under business rescue.
In response to a question in the Legislature, the MEC for Education, Sello Lehari, confirmed that he is considering extending the contract with an additional amount of R100 million.
The company has already failed to deliver on its initial contractual obligations as stipulated in the service level agreement with the North West Education Department.
It is irresponsible for the MEC to invest a further R100 million into a company that is facing liquidation. This decision undermines the basic principles of good governance.
According to news reports, EduSciMat owes creditors an amount of R36 400 000 and has loans amounting to R17 300 000 to shareholders and related parties. The sole owner of the company did not refute the reports on the company’s bad financial situation.
The DA will not allow taxpayer’s money to be used to bankroll a company that is in deep financial troubles. The R100 million should rather be used to improve the quality of education and the much-needed school infrastructure.
Issued by Tutu Faleni, DA Spokesperson on Education, 13 November 2017