R3.4 billion in travel contracts given to one company in the Eastern Cape

The Eastern Cape government gave one company, Khumzi Investments, R3.4 billion in official travel and accommodation contracts.

This was revealed by Education MEC Fundile Gade in response to parliamentary questions from the Democratic Alliance.

Gade said Khumzi Investments was one of four companies that had secured travel and accommodation contracts with his department.

Gade said that the companies were selected through a competitive bidding process and proper procurement procedures.

He said the value of the Khumzi Investments contracts for travel and accommodation increased from R211.8 million in 2021/22 to R430 million in 2022/23.

It then jumped again to R685.7 million in 2023/24, R917 million in 2024/25, and R1.17 billion in 2025/26.

Contracts worth an additional R342.9 million for Learning and Teaching Support Material (LTSM) were also awarded to Khumzi Investments.

It also received contracts worth R194.3 million for technical equipment, bringing the total contract value to R3.95 billion.

Horatio Hendricks, a member of the Eastern Cape Provincial Legislature, said that the issue raised serious questions.

Hendricks, who also serves as the DA’s Shadow MEC for Education, said that the Eastern Cape government must explain the R3.4 billion on contracts.

He questioned how so much money could be given to one company when learners are excluded from scholar transport due to insufficient funds.

The DA will now refer the Khumzi contracts and payment records to the Standing Committee of Public Accounts (SCOPA) for an investigation.

“We will also request the Premier and Provincial Treasury to urgently review provincial spending on official travel and accommodation,” he said.

“These figures demand scrutiny when set against the province’s treatment of scholar transport.”

He said that hundreds of thousands of qualifying learners are still not being provided transport due to the programme being significantly underfunded.

“Scholar transport is critical for poor and rural learners, who have no other means of getting to school,” Hendricks said.

He said that SCOPA must establish whether the Department received value for the billions of rands in contracts awarded to Khumzi Investments.

It must also reconcile the contract values against actual payments, and determine whether every payment was properly supported by goods or services delivered.