Key Takeaways
- Khumzi Investments, a single‑director travel agency, received more than R1 million per day for ten months in 2025, with total payments of R336.6 million over 1,317 authorisations.
- Over five financial years the Eastern Cape Department of Education awarded Khumzi contracts worth nearly R4 billion, of which travel and accommodation accounted for R3.4 billion and grew from R211.8 million (2021/22) to a projected R1.17 billion in 2025/26.
- The department claimed financial constraints delayed payments to other suppliers, yet Khumzi was paid promptly—sometimes dozens of times in a single day—under instructions from Head of Department Sharon Maasdorp.
- Maasdorp is under investigation by the Public Service Commission for alleged misconduct, including influencing procurement and attempting to affect a relative’s matric results.
- Sakie Sakhumzi Magele, Khumzi’s sole director, purchased the Eastern Cape newspaper titles (The Herald, Daily Dispatch, etc.) three months before the scandal became public, raising concerns about media influence and conflicts of interest.
- Opposition politicians and civil society warn that the massive travel spend contrasts with chronic under‑funding of scholar transport, leaving hundreds of thousands of poor learners without reliable school access.
Overview of the Tenderpreneur Scheme
The Eastern Cape Department of Education’s procurement practices came under intense scrutiny after it was revealed that one company, Khumzi Investments, received extraordinary payments for travel, accommodation, meals and related services. Between 14 January and 28 November 2025 the department authorised 1,317 separate payments to Khumzi, amounting to R336,556,106.50. On a single day in September the company was paid 17 times, and in November it received 68 payments. These figures illustrate a pattern of frequent, high‑value disbursements that far exceeded the department’s stated financial difficulties.
Scale of Payments to Khumzi Investments
Although the daily average payment worked out to just over R1 million, the distribution was highly skewed. The median payment was R44,291.20, with 279 authorisations (about 21 % of the total) for less than R10,000, together worth only R1.46 million. At the opposite end, 42 payments exceeding R1 million accounted for R204.5 million—more than 60 % of all funds Khumzi received. Ten of those large payments alone represented 45 % of the total, and four payments surpassed R10 million, the largest being R37,946,423 on 23 September 2025.
Travel and Accommodation Contracts
Travel and accommodation formed the bulk of Khumzi’s earnings, contributing R3.4 billion of the nearly R4 billion awarded over five financial years. This segment rose sharply from R211.8 million in 2021/22 to a projected R1.17 billion for 2025/26 (figure given at the end of October 2025, with five months of the fiscal year still to run). The department classified Khumzi as one of four travel agencies on a panel that handled accommodation, meals and transport for officials, yet it captured the overwhelming majority of the spend.
Other Contracts and Financial Trends
Besides travel, Khumzi held two additional agreements with the department: learning and teaching support material, and technical equipment. Support‑material spending climbed from R20.5 million in 2021/22 to R146.7 million in 2024/25 before disappearing from the MEC’s reply, with no figure reported for 2025/26. Technical equipment hovered between R35 million and R51 million annually until 2023/24, fell to R3 million in 2024/25, then rebounded to R55.8 million the following year. Combined, the three contracts totalled R3,952,738,161.18.
Department’s Financial Constraints and MEC’s Statement
Education MEC Fundile Gade told the provincial legislature that the department frequently struggled to pay suppliers on time, citing “financial constraints” that caused delayed or late payments. He asserted that no internal investigations had been conducted into Khumzi or its sister catering firm, Khazimla Catering, regarding potential irregularities, conflicts of interest or collusive practices. Gade also noted that no payments were currently disputed or flagged as irregular expenditure, a claim that appears at odds with the volume and timing of Khumzi’s disbursements.
Allegations of No Investigations
Despite Gade’s assertion of absent probes, the Public Service Commission had already been asked to examine Head of Department Sharon Maasdorp. Premier Oscar Mabuyane referred a list of allegations raised by Gade to the commission in December 2024; Commissioner Vusumuzi Mavuso held an inquiry in KuGompo City in April 2025. The allegations included attempts to influence a relative’s matric results, irregular suspension and demotion of senior officials, interference in procurement, and signing off the transfer of R80 million earmarked for a school purchase that never occurred. One claim asserted that Maasdorp suspended a director who refused to sign a contract for a service provider that allegedly bought her a house or helped pay for her residence.
Media Ownership and Influence
Three months before the scandal entered the public domain, Sakie Sakhumzi Magele acquired the Eastern Cape newspaper titles—The Herald, Daily Dispatch and the former Arena Holdings publications—through Ubuntu Media Holdings. Company filings showed the buyer was initially registered under a dormant name (K2026154195) and renamed on the day Arena’s CEO announced a partnership with an “Eastern Cape‑based private investment group.” Magele joined the board four days after the takeover, alongside Johannes Hermanus Peyper of Peyper Attorneys, who also represents him legally. Following IOL’s reporting, July salaries at the titles were paid late, prompting the editor‑in‑chief of the Daily Dispatch and Sunday Times, Bongani Siqoko, to resign as chief executive of Ubuntu Media Holdings.
Internal Payment Scramble and Email
On 26 June 2025 at 4.11 am, Maasdorp instructed the department’s top management to clear Khumzi’s outstanding balance of R18,485,154.69 within four days. The email read: “Dear top management members. See attached as per instruction (sic) of the HOD, all outstanding payments to Khumzi to be concluded.” The attached reconciliation listed 167 invoices dating back to October 2019, spanning 48 directorates and categories such as school nutrition and internal auditing; twelve invoices worth R1,632,314.10 lacked order numbers. An unnamed department official told IOL that Magele “holds so much influence … that even Maasdorp is just a phone call away when he needs to sort out payment issues for his company,” describing him as a “big guy” who “calls the shots.”
Investigations into HOD Sharon Maasdorp
Maasdorp herself is under investigation by the Public Service Commission. The probe examines the aforementioned allegations, including alleged procurement interference and personal benefit‑related misconduct. Her report has been submitted to Premier Mabuyane but remains undisclosed. At a media briefing in KuGompo City, Maasdorp responded to Gade’s criticism with the aphorism, “There is a saying that says dogs are only barking at a moving vehicle. Education is moving,” deflecting responsibility while declining to address the specific payment runs.
Political Reaction and Calls for Review
MPC Horatio Hendricks of the DA announced that his party would refer the Khumzi contracts and payment records to the Standing Committee on Public Accounts (Scopa) and urge the premier and Provincial Treasury to review provincial spending on official travel. He highlighted the stark contrast: while Khumzi secured more than R3.4 billion in travel and accommodation over five years, qualifying learners continue to be denied scholar transport due to alleged under‑funding. Hendricks urged Scopa to verify whether the department received the services it paid for, match contract values against actual expenditures, and ensure every payment was backed by delivered goods or services.
Implications for Scholar Transport and Public Trust
The controversy raises serious concerns about equity and transparency in the Eastern Cape’s public‑service procurement. Scholar transport, deemed critical for poor and rural learners who lack alternative means to reach school, remains significantly under‑funded, leaving hundreds of thousands without reliable access. Meanwhile, a single travel agency enjoys vast, seemingly unchecked financial flow, prompting questions about conflict of interest, media influence, and the effectiveness of oversight mechanisms. Restoring public confidence will require rigorous, independent audits, transparent contract disclosures, and decisive action against any proven malfeasance.
Conclusion and Outlook
The case of Khumzi Investments exemplifies how concentrated procurement power can coexist with claims of fiscal distress, creating a perception of preferential treatment for politically connected entities. Ongoing investigations by the Public Service Commission, potential Scopa hearings, and media scrutiny will determine whether administrative lapses constitute maladministration or deliberate corruption. Until accountability is established and the balance of spending is re‑evaluated—particularly to prioritize essential services like scholar transport—the Eastern Cape’s education sector risks eroding trust among learners, parents, and taxpayers alike.