National School Nutrition Programme Update; with Deputy Minister

Meeting report

Chairperson's opening remarks

The Chairperson expressed her belief that everyone was pleased with the Springboks' victory and their return home. They were currently landing at OR Tambo International Airport, and she anticipated that many South Africans would gather to welcome and celebrate their success. She noted that specific provinces had been chosen for their celebrations, which highlighted the economic disparities within the country.

She took the opportunity to thank the Members who had participated in the Basic Education Laws Amendment (BELA) Bill debate the previous Thursday, considering it a successful discussion, and mentioned their ongoing involvement in the Bill's processes at the national and provincial levels. She thanked the Members who physically supported the event, even if they did not actively participate in the debate.

She said the main item on the agenda for the day was an update on the status of the National School Nutrition Programme (NSNP), with briefings from the Departments of KwaZulu-Natal and the Eastern Cape.

Deputy Minister's opening remarks

Dr Reginah Mhaule, Deputy Minister of Basic Education (DBE), thanked the Committee for the opportunity to brief it on the NSNP, which played a crucial role in encouraging learners to attend school, especially those facing economic hardships. She highlighted government's role in introducing breakfast at schools, which had motivated learners to attend school eagerly. She acknowledged the challenges of serving over 9 000 000 learners daily, and commended the Department for handling this significant task.

She said they were reporting a day after the first day of the Matric examinations, and the first examination had gone well across all nine provinces. She referred to the recent storm damage in the uMkhanyakude area, and commended the KwaZulu-Natal (KZN) province for ensuring that no learner was disadvantaged due to the natural disaster. All learners were taking their exams, even in the areas affected by the storms.

She thanked the Portfolio Committee for their continued support and collaboration in the education sector, emphasising that they were all working towards providing quality education for the children of South Africa.

She introduced Mr Hubert Mweli, Director-General (DG), DBE, who was addressing and chairing a session with 25 universities. The senior management team from the Department, as well as the Members of Executive Councils (MECs) and Heads of Departments (HODs) from the provinces, were also present, showing their commitment to the administrative leadership of the Department.

She invited the DG to provide his remarks to the Committee.

Mr Mweli began by introducing all the participants, and provided a clear overview of the presenters from the various provincial departments. As mentioned by the Deputy Minister, there was a symposium with faculty members from both public and private universities. The symposium had started at 9:00, and his role at the symposium was to report to the Deputy Minister and the Portfolio Committee about their engagements, which typically occurred at the beginning and end of the year. During these sessions, they addressed various matters, including those related to the demand and supply of educational services, reading initiatives, the three-stream model, early childhood development, and performance in mathematics and science, as these areas produced teachers for the country.

He said that, as requested by the Deputy Minister, he would need to leave at the beginning of the presentation, but expressed his intention to return during the question and comments section if possible. He sought the Chairperson's permission to have Ms Neo Sediti, Director: National School Nutrition Programme, DBE,  to guide the Committee through the prepared presentation.

The Deputy Minister thanked Mr Mweli for his introduction, signalling the readiness to proceed.

NSNP update for KZN and EC

Ms Neo Sediti, Director: National School Nutrition Programme, DBE, introduced the presentation's structure, which included a brief background, provincial performance updates, the Department of Basic Education's (DBE's) oversight and monitoring responsibilities, and a conclusion.

Regarding background, Ms Sediti noted that KZN and the Eastern Cape (EC) had faced challenges with non-feeding in the first quarter of 2023 due to identified inefficiencies. These challenges were primarily related to supply chain management (SCM) and delayed fund transfers to schools. The DBE engaged with its provincial counterparts to address these issues, conducted site visits, and strengthened monitoring to ensure the programme's resumption.

Feeding had resumed in both provinces, and in terms of provincial performance for the second quarter, the EC had successfully introduced the breakfast programme for primary schools, with 75% of them reporting successful feeding during official visits. The breakfast programme was also extended to secondary schools. The province had ensured that meals met minimum feeding requirements, and had phased in chicken livers as a protein alternative.

In KZN, the programme had been successfully restored, and the province had transitioned to small and medium enterprises (SMEs), stabilising the programme. The programme adhered to NSNP requirements, payments to SMEs and volunteer food handlers were timely, and the breakfast programme was implemented across all districts.

Regarding DBE oversight, 131 schools in seven districts had been monitored, all of which had met minimum funding requirements. Both provinces had successfully phased in the breakfast programme. Four food safety workshops were conducted in four provinces, and seven provinces introduced the processed chicken livers project. The DBE continued supporting the provinces and monitoring improvements based on the Auditor-General's (AG's) audit findings.

Ms Sediti concluded by emphasising the ongoing oversight and support from the DBE, and recommended that the Portfolio Committee receive the updated report on the EC and KZN.

(See attached)

KZN report on Q2 NSNP performance

Ms Mbali Frazer, KZN MEC: Education, said that KZN had made significant progress since they faced the challenges that had led to the non-delivery of food items to many schools at the start of the second term in 2023. She expressed her pleasure that the implementation of the NSNP in their province had stabilised. At that time, over 2.4 million learners in 5 533 schools across 12 education districts received their meals as expected.

MEC Frazer attributed this achievement to the unwavering support from the DBE, the provincial Treasury, and the Office of the Premier. They worked closely together to address the situation and ensure the allocated funds were used appropriately.

She said that after facing logistical challenges that had led to the termination of the Department's agreement with the former main service provider, Pacina Retail, they had received legal advice to grant the current 1 765 service providers a three-year contract while finalising legal processes. This decision had restored normalcy to the NSNP, and it had been running smoothly since the end of April. To prevent a recurrence of the unfortunate events of April, they initiated monitoring of the programme using NSNP monitoring tools, including plans to address any non-compliance.

MEC Frazer commented that the KZN DBE had ensured that service providers were paid promptly, and verification was in place to prevent any further disruptions.

Regarding the delivery of food items by Pacina Retail in April, she said they had conducted a comprehensive reconciliation of all delivery notes, considering specifications, quantities, and food quality. This process was conducted by the NSNP head office in consultation with all the districts. After verifying ten of their 12 districts, the KZN Treasury recommended a partial payment of R7.9 million to Pacina Retail for goods delivered and received according to specifications in April. She confirmed that this special payment had been made on 12 October, leaving two districts with an outstanding payment of approximately R6 million. The KZN Department had meticulously reviewed all evidence submitted by retailers, and had found that around R48 million from their invoice could not be verified, so they could not recommend payment for this amount.

MEC Frazer mentioned that the implementation of the chicken liver project had not yet begun, but they anticipated its commencement in November. She explained that the product supplier, So Tasty, had successfully trained all volunteers and chief food handlers at the schools involved. She expressed their eagerness to implement this initiative, which was expected to benefit 187 000 learners across the province.

She added that KZN had initiated the breakfast programme in primary-combined and special schools. The breakfast provided was instant maise porridge, adhering to DBE food specifications, emphasising richness in vitamin A, vitamin B, and minerals. At that time, KZN's expenditure amounted to R1.2 billion, representing 56% of the total budget allocation for the 2023/24 financial year, which was set at R2.1 billion.

MEC Frazer expressed KZN's gratitude to the Committee for ensuring that their Department maintained the highest standards of integrity in both curriculum delivery and the management of public resources. She handed over to Mr Nathi Ngcobo, Head of Department, and the management team to provide a detailed presentation for the meeting.

Implementation of NSNP in KZN

Mr Ngcobo highlighted that the NSNP covered 2.4 million learners in 5 436 participating schools across 12 education districts in KZN, with a total value of approximately R2.1 billion. This amount included compensation of employees and nutrition education activities, which encompassed the training of food handlers. He also shared that the programme had created employment for approximately 14 868 individuals, including food handlers and chief food handlers.

Explaining the rationale behind the introduction of a hybrid model, he said that the DBE's food specification guidelines and the province's quality plan aimed to provide high-quality food items for the programme. However, the escalating costs of these high-quality food items exceeded the inflation rate, which made them unaffordable. This situation led service providers to compromise on food quality and quantity, as they received a flat rate for the entire year, regardless of fluctuating food prices. To address these challenges, they needed to introduce a central monitoring system for quality and economies of scale to ensure efficient and effective use of resources.

The challenges faced in April, including the non-delivery of food items when schools reopened, were well-documented. Meetings have been held with stakeholders, districts, and the main service provider to mitigate these issues. Reports of non-compliant food items, such as soya mince, were addressed promptly by replacing the non-compliant items with compliant ones. Challenges of long distances travelled by service providers for food collection were resolved by setting up more delivery points closer to schools. Gas supply issues were also resolved through the 1 765 service providers.

Mr Ngcobo elaborated on the current situation with service providers. Following legal advice and consultations with the Treasury and other structures, they had awarded the current 1 765 service providers a three-year contract, pending the finalisation of legal processes. They had also expanded the service level to these providers to ensure uninterrupted feeding. This expansion included a clause that allowed the Department to revert to the old method of supply if non-compliance caused non-feeding.

He addressed the situation with Pacina Retail, the successful service provider for the private label. Pacina Retail had opted out, which was accepted, but with the condition of payment for delivered goods. The Department agreed to this condition, but had imposed its own requirement for verification before payment. They had meticulously verified deliveries to fulfil the suspensive condition for the contract cancellation. After finalising the verification process in the 12 districts, the two outstanding districts were initially pending due to incomplete documentation. However, they subsequently received the necessary documentation, and their verification was also completed. A report on the status of these two districts was expected by the end of October.

Mr Ngcobo emphasised the strictness of their verification exercise. For example, Pacina Retail had submitted an invoice totalling R124 million, but after verification, only R70.9 million was approved for payment. Approximately R6 million for the two outstanding districts was either in the process of being cleared for payment, or had been cleared. There was a difference of R48 million, and the Department would not make payments until satisfactory proof was provided that the goods were delivered in the required quantities and quality.

The Department had started implementing the processed chicken livers project. Two approved processors remained after one was removed from the list of approved processors. The project would commence in November, involving 455 schools and benefiting 187 163 learners. So Tasty was selected as the preferred supplier for their price, delivery, accessibility and consistency. The company had also conducted training for food handlers.

Mr Ngcobo addressed questions raised in the media, particularly about sourcing from a single supplier. He said that a single supplier was selected due to limited suppliers that met the compliance, quantity, sustainability and other criteria. He also clarified that there was no risk of another scandal like Pacina Retail due to the supplier's track record and compliance with the necessary standards.

The Department had also initiated the introduction of breakfast in primary and special schools, ensuring that learners received breakfast before the start of the school day.

He discussed the issues the Auditor-General (AG) raised concerning material irregularities around the Pacina Retail contract. The Department had disagreed with the AG's declaration of material irregularity, and had raised valid objections based on procedural and interpretational differences in the tender documents. The Department and the AG were in the process of resolving these disputes through a dispute resolution process. He stressed the need to ensure that the issues in dispute were clarified before taking any action, including consequence management and potential criminal charges.

Mr Ngcobo commented that the DBE took consequence management seriously, and that there were many instances where senior managers and directors had been subjected to disciplinary processes, including dismissal, in the past few years. However, a cautious approach was being taken to ensure that actions were based on clarified issues, rather than disputes.

He referred to the support received from the Office of the Premier and other government departments. Different workstreams, including legal, supply chain management, finance, communication, information communication technology (ICT), and monitoring and evaluation, had been established to address various aspects of the situation. These work streams played a crucial role in providing support and mitigating potential litigation exposure.

He provided details about the verification process of food items received from Pacina Retail in April. They had conducted a comprehensive reconciliation of delivery notes, involving internal and external verification. The internal reconciliation process had been completed, and the results were submitted to National Treasury for further verification and audit.

(See attached)

Mr Ngcobo concluded by recommending that the Portfolio Committee consider and discuss the updated status report regarding the implementation of the NSNP in KZN.

Implementation of NSNP in EC

During this presentation, Mr Fundile Gade, Eastern Cape MEC: Education, and his team discussed several important aspects of the NSNP. He acknowledged some of the challenges faced at the beginning of the year, which were primarily due to data verification and the transfer of funds to schools. These logistical issues were caused by a lack of data from some schools in certain districts. However, these challenges have been addressed.

He emphasised the potential of the NSNP to contribute beyond simply providing meals to students. He encouraged leveraging the programme's financial resources, which amounted to nearly R13 billion per financial year, to address the country's economic challenges, such as unemployment, inequality, and poverty. He suggested that the programme could be used to support local economic development and create employment opportunities for unemployed youth.

He also stressed the importance of ensuring the credibility of data and the information systems used in the NSNP. There was a need to ensure that the food provided was of high quality and safe, especially considering incidents of food poisoning in some schools. He also emphasised the importance of monitoring the quality of food served, as this could significantly impact the health of learners.

The presentation highlighted the critical role of the NSNP in improving access to education, reducing dropouts, and contributing to educational stability in South Africa. The MEC acknowledged the programme's success in increasing the number of students accessing basic and higher education. The presentation aimed to provide insights into the challenges faced and the steps taken to address them, promoting a comprehensive understanding of the NSNP's impact and potential for improvement.

Ms Chulekazi Xundu-Bula, Director, NMBTI, Eastern Cape DBE, offered a comprehensive overview of the NSNP in the province. She described it as a poverty alleviation programme, which operated under a decentralised model and received funding through a conditional grant. This grant was governed by the Division of Revenue Bill, and aimed to address three primary pillars:

• providing nutritious meals to learners;
• offering nutrition education and advocacy; and
• promoting sustainable food gardens in schools.

The programme allocated resources to schools, enabling them to employ volunteer food handlers, procure food items and equipment, and obtain gas or fuel for cooking.

Regarding the budget allocation, the Eastern Cape Province has seen an increase in funding over the years. In the 2023/24 financial year, the NSNP was budgeted at approximately R1.6 billion, with learner numbers exceeding 1.6 million. The funding model involved several steps, starting with the allocation from the DBE. Funds were transferred to schools following compliance checks to ensure adherence to financial and administrative requirements.

Ms Xundu-Bula addressed the challenges faced in April, which had resulted in delays. These challenges were primarily related to data collection and validation. Some schools had encountered issues in submitting data due to network problems and load-shedding. Additionally, certain schools had faced difficulties with their databases meeting validation criteria, causing further delays.

To mitigate these issues, the Department has taken corrective measures. They had enlisted the help of district-based Educational Management System (EMS) officers to consolidate and validate data more effectively. This approach allowed all schools to receive their allocated funding by 9 May, rather than the initially planned date of 24 April.

The feeding programme's performance was detailed, highlighting learner numbers and funding allocations for each quarter. Additionally, a shift to using canned chicken livers was mentioned due to their longer shelf life and reduced dependence on refrigeration.

Finally, Ms Xundu-Bula presented a tranche payment schedule, indicating when funds were disbursed to schools. The first three tranches had already been distributed before schools' reopening to ensure timely availability of funds for the feeding programme. The fourth tranche was expected to be released before the start of the next school term.

(See attached)

Discussion

Ms M van Zyl (DA) raised several concerns and questions regarding the NSNP in the EC and KZN. She mentioned the recent incident of 143 learners being admitted to hospitals and clinics in Komani, Queenstown, and highlighted the need for safe and nutritious meals in schools. She suggested running a programme to inspect food quality across all areas where school feeding schemes were provided.

She posed the following questions to the MECs of the EC and KZN:

• Were all schools equipped with proper kitchen facilities?
• Did schools check if their food suppliers complied with the Foodstuffs, Cosmetics, and Disinfectant Act, and did all suppliers have certificates of acceptability?
• Have there been any consequences for the reported issues of children going hungry for weeks in these provinces?
• Could the lunchtime at 11:30 be rethought, as it was considered too close to breakfast time, especially since some learners got home only after 3:00 p.m. due to learner transport issues?

Mr B Nodada (DA) thanked the provincial Departments for their presentations and raised several specific questions. Referring to the KZN Department of Education, he began with concerns about the procurement of a R2.1 billion contract for meal distribution. He asked about allegations that a family member of the Director-General might have benefited from this contract. He requested information on whether an investigation had been conducted regarding this matter, and when officials responsible for approving the contract might be identified.

He questioned why KZN and the Northern Cape had not yet implemented the chicken livers initiative, and whether the avian flu crisis had affected their plans. He also inquired about an apparently incompetent company that had been awarded a tender in KZN, and the fate of the officials responsible for this decision. He emphasised the need for effective consequence management in government to address issues of corruption and irregular expenditure.

He also stressed the importance of mitigating the loss of learning caused by disruptions in the feeding programme, and sought information about measures taken for this purpose. He asked about the regulation and use of food gardens in schools, and how the Department ensured food safety at all levels. He also asked what was being done to prevent further cases of food poisoning.

Turning to the EC DBE, he questioned whether schools in the province were monitored only on the days of visits, and expressed concern about the schools where learners did not receive breakfast.

Lastly, he asked whether there was still a memorandum of understanding (MoU) between the Departments of Basic Education, Social Development, and Agriculture regarding the NSNP, and requested details about its existence, as this programme touched all these departments.

Mr P Moroatshehla (ANC) recounted his personal experience of attending school in the mid-60s due to the incentive of receiving a cup of Morvite. He commended KZN for its efforts to correct issues related to the school nutrition programme.

He raised questions regarding the disputes mentioned in the report, asking if there was a fallback strategy in case an amicable resolution was not reached. He also inquired if the Department had considered seeking assistance from the DBE in Pretoria during disputes, to avoid litigation.

He highlighted concerns about ongoing reports of food poisoning incidents, citing a recent case in the Eastern Cape. He asked the Departments in both provinces what measures were being taken to prevent a recurrence of such incidents and ensure the credibility of food sources for students.

The Chairperson addressed the EC Department, and shared concerns about the incidents of food poisoning affecting learners. She mentioned that some incidents were not occurring on school premises, but still affected the schools. She inquired about the collaboration with the Department of Agriculture, and whether there were initiatives to produce food for learners within the government. She also sought information on the procurement of food from local municipalities in both provinces.

Responses

National DBE

Dr Granville Whittle, Deputy Director-General: Educational Enrichment Services, DBE, addressed several key points and questions raised during the discussion. He first discussed the issue of food poisoning incidents, clarifying that these incidents did not typically happen within school premises, but often occurred when learners purchased food outside of school. The DBE had provided guidelines to schools on managing such incidents, and was currently working on addressing this issue at the national level.

He stressed the Department's commitment to improving kitchen facilities, especially in new school infrastructure projects, and the allocation of budgets for kitchen equipment and container kitchens in schools that lacked adequate facilities.

Regarding the monitoring system, he explained that the DBE used a system called Monitoring, Reporting, and Response (MRR) with civil society partners to evaluate schools. Monitors were appointed in all provinces, and a grading system was used to assess schools' performance.

He also mentioned that food gardens were no longer a primary focus in the school nutrition system due to the difficulties in maintaining them without the full commitment of the schools. However, the Department encouraged schools to collaborate with private sector partners in areas where food gardens could be successful.

Dr Whittle shared information about partnerships with various organisations, including Tiger Brands, Unilever, PepsiCo and MassMart, which provided support and equipped container kitchens for schools.

In response to a question about an MoU between the DBE, the Department of Agriculture, and the Department of Social Development, he mentioned participating in a broader government process related to nutrition security for families. However, he was unaware of a formal MoU between the mentioned departments.

He concluded by mentioning the DBE's interest in studying the Brazilian "homegrown school feeding" model, which focuses on linking local farmers with schools to enhance food security. The DBE was considering replicating this model in South Africa.

KZN DBE

Mr Ngcobo began his response by expressing gratitude to the Committee Members for their constructive criticism and the questions they had posed. He acknowledged that most of the questions were relevant to the national DBE, rather than specific to KZN. He focused on addressing the questions that were directly related to KZN.

Regarding consequence management, he emphasised the province's commitment to acting against any official found to have committed misconduct during the awarding of the contract to Pacina Retail. The time frame for acting would depend on resolving the concerns raised by the AG. The province was seeking legal advice on these matters and was dedicated to acting against any irregularities or misconduct.

He clarified that allegations had been made about the Director-General's involvement in the contract, and said that the province would assess the situation once the issues raised by the AG had been addressed.

Responding to questions related to the appointment of an incompetent company, he said that the winning service provider initially had technical partners, including a reputable retail outlet specialising in food. However, the technical partner had withdrawn from the agreement close to the time of delivery, causing logistical problems for the service provider and leading to disruptions in the programme.

He said there was a need to avoid legal disputes and costly court processes. The province was actively working to resolve disputes without resorting to court action, as exemplified by the Pacina dispute.

Mr Ngcobo emphasised the importance of thorough checks and balances in the procurement process, stating that the KZN province was committed to ensuring proper documentation and evidence of delivery before making any payments. They were willing to pay only once the service provider provided satisfactory evidence of delivery and the quality of food items.

He expressed the belief that they would find common ground with the AG without resorting to legal reviews, because the differences in interpretation of the tender document were minor. While acknowledging that there were learners who were not fed during the challenging times, the province had provided schools with flexibility to use existing food stocks to ensure that learners received meals, even if they did not precisely match the planned menu.

He also confirmed that the province was in the planning stages to implement the chicken livers programme, and it was expected to begin in November.

MEC Frazer expressed her gratitude to the Members, and said the responses provided by the HOD should address their concerns. She added that the province used NSNP coordinators to monitor compliance, and conducted workshops for service providers to ensure they understood the requirements.

EC DBE

MEC Gade commented that most of the questions from the Members had been addressed. He noted that there was a need for a structured MoU with the Department of Agriculture, and they were working towards that. Regarding the food poisoning issue, he emphasised that it was not linked to the school nutrition programme, but was more related to unaccredited food sold in the areas surrounding schools. He acknowledged that this was a sensitive topic, but stated that measures were being taken to address it, such as mobilising stakeholders and conducting clean-up campaigns around these stores.

He said the province had closed the gap created by any disruptions, including food poisoning incidents, through catch-up programmes. He also mentioned the initiation of food gardens in schools, especially those participating in competitions with companies like Tiger Brands, Massmart and Unilever. He highlighted the importance of sustainable food quality and emphasised that food procurement in schools was regulated, making it difficult for schools to buy food outside of the prescribed menu. He considered the circulation of unaccredited food a security threat that needed to be addressed.

He acknowledged the challenges related to kitchen infrastructure, but said they were improving infrastructure performance and getting kitchens through partnerships with companies and government programmes. He stressed the importance of maintaining healthy kitchen standards to avoid potential health issues.

He requested input from Ms Xundu-Bula, in case there was anything that he had overlooked.

Ms Xundu-Bula said that the MEC had covered most of the aspects, but added that the province had an accuracy rate of 97% on any given day in terms of meal delivery. They monitored the process closely, and all districts had monitors in place. They also cross-checked their data using the MRR reports, as discussed by the DG, from the national department.

The Chairperson thanked Dr Whittle, the MECs and HODs from both provinces for their responses, and asked the Members if they had any follow-up questions.

Since there were no further questions, the Chairperson expressed concern about food poisoning incidents affecting schools, and urged the MECs to be vigilant and ensure that students were cautious about where they bought their food.

Committee matters

The Chairperson presented the minutes of the 24 October. There were no corrections, and the Chairperson asked if the Members were ready to adopt the minutes.

Mr Moroatshehla moved for the adoption, and Mr W Letsie (ANC) seconded.

The minutes were adopted.

The Chairperson announced that the next meeting would address a petition received from the Change Foundation regarding pit latrines in KZN, Limpopo, and the Eastern Cape.

Mr Moroatshehla expressed concern about misrepresentations damaging the Portfolio Committee's image. He sought advice on how the Committee should respond to these misrepresentations.

The Chairperson acknowledged the concerns raised by Mr Moroatshehla regarding misrepresentations and misinformation circulating on social media platforms. She suggested that the Committee should focus on their work and, if needed, issue warnings or clarifications to the public.

Mr Moroatshehla emphasised the importance of Members of the Portfolio Committee refraining from misrepresenting the facts and decisions made by the Committee, as this was a violation of their code of ethics. He suggested making a strong announcement to that effect.

The Chairperson noted what was said by Mr Moroatshehla, and thanked everyone for their participation.

The meeting was adjourned.