UDM Calls for Urgent Forensic Probe into R3.95 Billion Eastern Cape Education Contracts
“This is not an abstract accounting matter. Every rand improperly spent is a rand that could have provided stationery, learning materials, sanitation, school nutrition or infrastructure" - Holomisa.
The United Democratic Movement (UDM) has formally requested the intervention of the Auditor-General of South Africa (AGSA) and the Portfolio Committee on Basic Education over nearly R4 billion in contracts and expenditure involving Khumzi Investments and the Eastern Cape Department of Education.
UDM President Maj. Gen. Bantu Holomisa has raised alarm over what he describes as “extraordinary and deeply troubling” spending patterns, particularly the reported R3.4 billion allocated to travel and accommodation over a five-year period.
Holomisa’s letter highlights stark contradictions between the reported expenditure and the realities faced by learners in the province. Many schools continue to operate without adequate sanitation, infrastructure, or teaching materials. Some children still learn under trees, cross rivers to reach classrooms, or face long distances without reliable scholar transport.
“Public money allocated to education must ultimately serve education and, above all, the learner,” Holomisa wrote. “Every rand spent must be capable of being justified in terms of necessity, efficiency, effectiveness, economy and measurable public benefit.”
Payments Under Scrutiny
According to figures now in the public domain:
R336.56 million was authorised through 1,317 payments to Khumzi Investments in 2025 alone.
Between 19 June and 8 July 2025, the company reportedly received 96 payments totalling R12.5 million.
Reports also point to the urgent processing of R18.5 million in outstanding payments, including an instruction allegedly issued in the early hours of the morning to expedite approvals.
Holomisa argues that these transactions must be reconciled against contracts, purchase orders, invoices, and services rendered, warning that the concentration of such vast sums through a single company raises red flags about procurement practices, competition, and value for money.
The UDM has urged AGSA to conduct a special forensic audit into the contracts and payments, while calling on Parliament’s Portfolio Committee on Basic Education to summon senior officials — including the MEC, Head of Department, CFO, and supply-chain managers — to account for the expenditure.
Holomisa insists that Parliament must demand the complete documentary record of the reported R3.95 billion in contracts, reconciling contracted amounts against actual services delivered and measurable benefits to the education system.
“This is not an abstract accounting matter,” Holomisa stressed. “Every rand improperly spent is a rand that could have provided stationery, learning materials, sanitation, school nutrition or infrastructure. We cannot have children learning under trees while billions are being spent on travel and accommodation.”
The UDM’s intervention underscores growing public concern about governance and accountability in the Eastern Cape’s education system, where persistent challenges continue to undermine learners’ access to quality schooling.
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