The contractor at the centre of the R2.1bn school feeding scheme scandal that left thousands of KwaZulu-Natal schoolchildren without food says the department of education is still bound by the contract, despite the government having issued a circular terminating the tender.
The circular followed an e-mail from Pacina Retail CEO Manzini Zungu informing the head of the department, Nathi Ngcobo, of his company’s intention to “opt out” of the food distribution tender.
However, Zungu wrote to Ngcobo on Thursday saying the “opt out” e-mail did not amount to the cancellation of the contract — and demanded that the department settle invoices submitted by Pacina.
The food distribution programme stalled for weeks, leading to some children in the 5,444 schools in the scheme unable to get a meal as part of the national school nutrition programme (NSNP).
This week the ANC in KZN said the contractor was in breach of his service agreement, which necessitated the cancellation of the contract.
The party announced contingency plans to be undertaken by government that include going back to small business operators delivering food to schools, instead of the one service provider system awarded to Zungu.
Zungu is a director of AmaZulu FC and a business partner of Sandile Zungu, the club's chair. Sandile Zungu previously ran for the provincial ANC chair, but pulled out of the race at the last minute.
Zungu maintains that his company is not in breach of the service agreement it entered into with the department of education.
He said the department’s breach notice dated April 19 was defective and should be set aside. “The notice period in the SLA [service-level agreement] is 21 business days, yet the department has provided us with seven working days.
The department is also aware of the sabotaging of the drivers which took place. Whilst there were these initial logistical issues, we nevertheless ensured that deliveries took place.
— Pacina Retail CEO Manzini Zungu
“Pacina Retail (Pty) Ltd acknowledges the hiccups in the delivery of food items to schools because of logistical challenges. In the meeting of Wednesday, April 13 2023, it was concluded that interim arrangements will be implemented for two feeding days whilst Pacina Retail (Pty) Ltd complete the movement of stock to another warehouse which is not affected by the new warehouse electronic management system, SAP.
"Pacina Retail (Pty) Ltd hereby confirms its readiness to deliver food to schools from Saturday, April 15 2023 onwards”.
He said the department did not respond to his letter. The department was well aware of Pacina Retail’s position and the logistical challenges which “were beyond our control”.
Pacina Retail said in its letter the department was cognisant of the fact that Spar KwaZulu-Natal had difficulties in providing goods as agreed and opted to proceed with a remedial plan to ensure that there was implementation of the tender.
“Once again, at no stage, did the department object to the remedial plan. The department is, again, aware of the initial logistical issues that we were faced with, due to the interference of various forums, which stopped the delivery of trucks.
“The department is also aware of the sabotaging of the drivers which took place. Whilst there were these initial logistical issues, we nevertheless ensured that deliveries took place,” Zungu said.
He added that while the contract’s obligations ended with the delivery of the goods to the collection points, they initially undertook to communicate with the various SMMEs to ensure that the goods reached the schools.
Zungu said Pacina Retail had not been paid for any work done in relation to the contract.
He maintained that Pacina Retail “did not terminate” its agreement with the department as previously reported.
“Our e-mail clearly made reference to 'details which will follow'. It is therefore unclear on what basis the department issued the circular as the termination clause was not invoked, nor was there any intention to terminate the SLA in circumstances where we have been performing under the SLA.
“The department will note that the phrase 'opt out' is not defined in the SLA, our e-mail also did not provide any time frame in relation to the intended opt out, the basis for this was the nonpayment by the department.”
The department of education had not responded to questions at the time of going to press.
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