CONTROVERSIAL distribution company Edu Solution will help deliver more than R1-billion worth of textbooks to thousands of Eastern Cape schools.
Edu Solution and Simo Solution formed a joint venture and were appointed by the Publishers Association of South Africa (Pasa) to manage warehouses and distribute learner teacher support material (LTSM).
East London-based ELCB did the job in the province for two years but their contract was not renewed this year.
The education department has bought all LTSM and other teaching material from Pasa, who appointed Edu Solutions and Simo Solutions.
This comes two weeks after education MEC Mandla Makupula signed a performance agreement with premier Phumulo Masualle promising LTSM would be distributed to all 5200 schools by December. The department has a budget of R781-million for textbooks and R208-million for stationery for the current financial year. Edu Solution and Simo Solution’s joint venture is 13% to 15% of the LTSM budget.
Edu Solutions founder Mateli Mpuntsha yesterday said: “We will not only distribute LTSM, but also manage the warehouses.” Asked about the controversies in other provinces, Mpuntsha assured the Dispatch that all their problems had been resolved.
“Everything will go according to plan. We have resolved all.”
Edu Solutions was accused of bungling textbook delivery in Limpopo in 2012. On December 7 2010 it was paid R19-million in “management fees” – a direct contravention of the Public Finance Management Act.
When the company was paid, it had not delivered a single consignment.
It signed the contract with the Limpopo department of education on October 18 2012 and the contract was terminated later the same year.
“When the problems in Limpopo started, our contract with that province had already been terminated,” Mpuntsha said yesterday. In 2013, the Gauteng education department awarded Edu Solutions a multimillion-rand contract to provide textbooks and other learning material in the province.
Simo Solutions managing member Zakhe Madala also confirmed the tender but was unable to say how many schools they would supply.
“The orders haven’t come yet so it is difficult to say,” he said.
ELCB’s John Heath refused to comment on why their contract to distribute LTSM had not been renewed.
Pasa’s Warren Kliphuis confirmed the joint venture. “There were several companies that responded to an advert, but after a lengthy process and presentations in Cape Town…we chose them.” Kliphuis said the contract was until the first week in January.
“Government has just placed orders and we will start the distribution from October until the last day of the school term in December…We will then have a mop-up period which we expect to last until the first week of January.”
He said the contract with Simo and Edu Solutions would end when every school had received their LTSM order.
“The department came to us and asked if we could facilitate the delivery … Also as individual companies we did not have the resources. We did the same last year and are following a process that has been successful.” Kliphuis defended Edu Solution saying the Limpopo department had been at fault as it went into administration and as a result orders were not placed with publishers. “We were not nervous about Edu Solutions because they have good infrastructure, financial backing, good IT infrastructure and solid systems. They understand the textbook business and are not newcomers,” he concluded. — mphumziz@dispatch.co.za
Controversial firm in R1bn school deal
Edu Solution and Simo Solution formed a joint venture and were appointed by the Publishers Association of South Africa (Pasa) to manage warehouses and distribute learner teacher support material (LTSM).
East London-based ELCB did the job in the province for two years but their contract was not renewed this year.
The education department has bought all LTSM and other teaching material from Pasa, who appointed Edu Solutions and Simo Solutions.
This comes two weeks after education MEC Mandla Makupula signed a performance agreement with premier Phumulo Masualle promising LTSM would be distributed to all 5200 schools by December. The department has a budget of R781-million for textbooks and R208-million for stationery for the current financial year. Edu Solution and Simo Solution’s joint venture is 13% to 15% of the LTSM budget.
Edu Solutions founder Mateli Mpuntsha yesterday said: “We will not only distribute LTSM, but also manage the warehouses.” Asked about the controversies in other provinces, Mpuntsha assured the Dispatch that all their problems had been resolved.
“Everything will go according to plan. We have resolved all.”
Edu Solutions was accused of bungling textbook delivery in Limpopo in 2012. On December 7 2010 it was paid R19-million in “management fees” – a direct contravention of the Public Finance Management Act.
When the company was paid, it had not delivered a single consignment.
It signed the contract with the Limpopo department of education on October 18 2012 and the contract was terminated later the same year.
“When the problems in Limpopo started, our contract with that province had already been terminated,” Mpuntsha said yesterday. In 2013, the Gauteng education department awarded Edu Solutions a multimillion-rand contract to provide textbooks and other learning material in the province.
Simo Solutions managing member Zakhe Madala also confirmed the tender but was unable to say how many schools they would supply.
“The orders haven’t come yet so it is difficult to say,” he said.
ELCB’s John Heath refused to comment on why their contract to distribute LTSM had not been renewed.
Pasa’s Warren Kliphuis confirmed the joint venture. “There were several companies that responded to an advert, but after a lengthy process and presentations in Cape Town…we chose them.” Kliphuis said the contract was until the first week in January.
“Government has just placed orders and we will start the distribution from October until the last day of the school term in December…We will then have a mop-up period which we expect to last until the first week of January.”
He said the contract with Simo and Edu Solutions would end when every school had received their LTSM order.
“The department came to us and asked if we could facilitate the delivery … Also as individual companies we did not have the resources. We did the same last year and are following a process that has been successful.” Kliphuis defended Edu Solution saying the Limpopo department had been at fault as it went into administration and as a result orders were not placed with publishers. “We were not nervous about Edu Solutions because they have good infrastructure, financial backing, good IT infrastructure and solid systems. They understand the textbook business and are not newcomers,” he concluded. — mphumziz@dispatch.co.za
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