Supplier sues KZN education

A local firm that was awarded a tender to supply and distribute textbooks to high schools across KwaZulu-Natal has taken the Department of Education to court after it failed to provide the firm with the necessary purchase orders to comply with the tender. Modlin E-learning Solutions is a publisher specialising in educational textbooks used throughout the country. It was awarded the tender by the KZN Department of Education (DoE) on March 14 this year, to supply and distribute physical science, mathematics and natural science dictionaries for grades 10 11 and 12. In court papers lodged at the Pietermaritzburg High Court on Wednesday, director of the company David Modlin said the company stood to lose millions of rands if the department did not provide it with the relevant purchase orders to execute the tender.

He confirmed the firm had made arrangements with a printing company, Paarl Media KZN, and a distributor to execute the tender, with both contractors committing funds to this end. Modlin said, owing to the weakening of the rand since the firm made its bid for the tender, the price of paper had gone up by 30 percent. As security for the purchase of paper from printers, Modlin said he personally ceded an investment to the amount of R8.5 million to Paarl Media, in the event that the paper was not bought. He said the notice of intention to award the tender to his company was issued in January. After the issuing of the tender, two unsuccessful bidders appealed the decision; but on March 6, the Bid Appeals Tribunal dismissed the appeal and the decision to award the tender to Modlin E-learning Solutions was upheld.

On March 14 the MEC for Finance in KZN confirmed the decision. To proceed with the tender, Modlin said the department needed to provide the firm with purchase orders, which allowed it to proceed with the provision of goods. This purchase order acts as the receipt against which the firm can invoice the department for services rendered. Modlin said that to date, no such purchase orders had been provided by the department and despite numerous requests, no indication has been given as to when the purchase orders will be issued. Modlin explained that at the time the department advertised the tender, no printers in the country could meet the request without putting in place various structures. “The amount of paper required to print 600 000 text books was substantial and paper had to be specifically ordered and dedicated printers for the dedicated time period needed to be secured, which we did via Paarl Media. But now we find ourselves in the invidious position where we have committed the resources and the funds, but we are unable to perform,” Modlin said.

The firm has spent in the region of R1.5m researching and preparing for the implementation of the tender, however Modlin said it now faced cancellation of agreements with the printer and the distributor and would suffer irreparable damage to its reputation. The case has been adjourned to August 20 to allow the Department of Education to respond.