Service providers have taken the Gauteng education department to court to halt the appointment of 49 new contractors, claiming that some companies have been deregistered, while others are not tax-compliant or are even non-existent. (Photo by Sharon Seretlo/Gallo Images via Getty Images)
A group of disgruntled service providers linked to the national school nutrition programme in Gauteng has taken legal action against the provincial department of education to halt the appointment of new contractors, claiming irregularities and corruption in the tender process.
The challenge follows the publication on 25 February of 49 companies awarded a lucrative contract to supply and deliver dry and perishable groceries to learners in primary, secondary and special needs schools in all 10 districts of the province. The contract, estimated to be worth billions of rands, is set to run from 1 March this year to 28 February 2028.
The new list has raised red flags among bidders who were sidelined. Several of the awarded companies are allegedly non-compliant with tax regulations, deregistered or not listed on the Companies and Intellectual Property Commission database, according to court papers .
Sources said some of the listed entities have ties to politically connected people and corrupt officials.
“There’s a pattern of manipulation here — entities that don’t exist or shouldn’t qualify have been fast-tracked, and we believe this points to a deliberate attempt to loot public funds,” said one of the unsuccessful bidders, who asked not to be named for fear of reprisal.
The bidders argue that the integrity of the procurement process has been compromised and are asking the courts to freeze any appointments until the matter is fully investigated and resolved in transparency.
“We want the court to declare that no new players should be involved until the process is complete and above board,” said the source.
In a statement, Gauteng department of education spokesperson Steve Mabona confirmed a delay in the work of new service providers.
“We must acknowledge that, since their appointment, some service providers have delayed their deliveries to a few schools. However, this was rectified by Friday, 11 April 2025, and we can confirm that all schools received their stock,” he said.
Asked about the allegations, Mabona said the department could not comment about matters still in court.
This is not the first time the tender has been contested. Last year LTC Holdings — one of the service providers on the current list — filed an urgent court interdict in the Pretoria high court to stop the R1 billion contract awarded to 47 other companies in June. That court challenge caused delays in the implementation of the feeding scheme, leaving some learners without meals.
The interdict application claimed that the Gauteng basic education department had failed to adhere to procurement procedures.
In August, Mabona said the department acknowledged that “things didn’t go as they were supposed to happen” during the tender process, leading to legal challenges from unsuccessful bidders.
In response to those allegations, Basic Education Minister Siviwe Gwarube halted the issuance of a R9.8 billion national tender intended to centralise the nutrition programme under a single provider.
The applicants in the latest legal challenge say they are prepared to present their findings in court and have indicated a willingness to approach the South African Police Service for criminal investigations into the awarding of the tender.
“The Gauteng school feeding tender scandal should serve as a turning point. An independent forensic investigation into procurement processes is essential, and those found guilty of corruption must face prosecution and be permanently barred from public contracts,” said attorney Steve Friedland.
A 2020 court judgment stated that the government cannot delay its duties to ensure that a learner’s rights to basic education and basic nutrition are met. This means the government must provide for these rights when parents and caregivers are not in a financial position to do so. The judgment affirms that nutrition, school infrastructure, textbooks and scholar transport are a central part of the right to basic education.
The nutrition programme is an initiative that provides daily meals to more than 1.4 million learners in Gauteng, many of whom rely on this food as their primary source of nutrition. Since 1994, the programme has tried to improve learners’ educational outcomes by combating malnutrition, reducing hunger and improving school attendance.
For the 2024-25 academic year, the department of basic education allocated R9.798 billion to the programme in all provinces, a 5.6% increase from the previous year’s allocation of R9.279 billion.
This funding is part of the department’s overall budget of R32.3 billion for the 2024-25 financial year, which represents a 7.4% increase from the 2023-24 allocation.
Child malnutrition is on the rise, according to an annual review of child development produced by the Children’s Institute at the University of Cape Town and Ilifa Labantwana. From 2020 to 2023, cases of severe acute malnutrition increased by 33%, with 15 000 children having to be admitted to hospital in 2022-23 alone.
The report found that about 58% of children aged 14 and younger receive social grants, primarily through the child support grant. But, the youngest children, especially infants, are most likely to be excluded from the grant as a result of delays in registering them after birth.
The report highlighted the urgent need for an increase in the value of the child support grant, currently R530 a month, to align with the cost of a thrifty healthy basket of R945.
“Due to the size of the grant relative to the cost of ensuring child nutrition, and competing demands on the grant from other household needs such as housing and clothing, the grants are not enough to alleviate food insecurity,” it said.