Lighthouse Publishers, the small publishing company that found itself at the centre of South Africa’s heated Foundation Phase textbook controversy, has been cleared of wrongdoing following an independent investigation commissioned by the Department of Basic Education (DBE).
The findings were presented by DBE Director-General Mathanzima Mweli to school governing body associations and unions on Thursday, with investigators Rakoma and Associates finding no evidence that Lighthouse had been favoured or that its materials had been evaluated irregularly.
The development provides an important new twist to a controversy that erupted in April after reports questioned how a relatively new publisher could secure a significant share of the new Foundation Phase National Catalogue.
No evidence of fraud or favouritism
According to the findings presented by Mweli, the investigation specifically examined allegations involving Lighthouse Publishers.
The presentation states: “No evidence of fraud, favouritism, manipulation or evaluation irregularities was identified. The investigation found that all allegations relating to Lighthouse Publishers were not substantiated.”
Rakoma and Associates consequently recommended that Lighthouse retain its share of the national catalogue.
The investigators found that the timing of Lighthouse’s registration did not breach the terms of reference for the catalogue process. They also found that the company was not required to have physical office premises and that, although Lighthouse itself had no previous publishing history, its team had relevant educational expertise.
The investigation further found no evidence of a conflict of interest or preferential treatment linked to the involvement of early-grade literacy specialist Penelope Groome.
The evaluation of Lighthouse’s materials was conducted anonymously and, according to the findings, the same process was applied consistently to publishers.
Rakoma concluded that “the textbook evaluation process was applied consistently and achieved fairness across publishers”.
How the controversy started
The dispute dates back to the release of the new Foundation Phase National Catalogue for Grades 1 to 3.
The catalogue is significant because it is intended to guide the provision of learning and teaching support materials to young learners and was being prepared for implementation ahead of the 2027 academic year. The previous Foundation Phase catalogue had not been updated for about 14 years.
The controversy intensified after News24 reported in April that Lighthouse, described as a company with no publishing history, had secured 26% of the approvals in the catalogue. The reported value associated with its potential share was more than R285 million, although inclusion on the catalogue itself does not amount to a guaranteed contract or purchase.
The DBE has repeatedly stressed that the national catalogue is not a conventional tender in which the department awards a single R1.6 billion contract to one company.
In response to parliamentary questions, the department explained that the catalogue is a process through which learning materials are evaluated and approved for possible inclusion, while provincial education departments remain responsible for procurement decisions. Those decisions depend on factors including budgets, learner numbers, school choices and applicable procurement rules.
Nevertheless, the scale of the potential expenditure and the way the catalogue could influence provincial purchasing decisions prompted scrutiny from Parliament, publishers and other stakeholders.
Minister ordered scrutiny
Basic Education Minister Siviwe Gwarube responded to the controversy by seeking greater scrutiny of the process.
She previously said the stakes were particularly high because the Foundation Phase is where fundamental literacy and numeracy skills are developed.
“The Foundation Phase is where the future of our education system is shaped,” Gwarube said, stressing that the quality of learning materials affects literacy, numeracy and long-term education outcomes.
She subsequently supported an independent external investigation while other oversight processes were also undertaken, including work by the DBE’s Internal Audit function and the Auditor-General of South Africa (AGSA).
The catalogue was placed on hold while the various reviews took place.
Investigation found weaknesses – but not Lighthouse wrongdoing
While Lighthouse has been cleared of the allegations levelled against it, the findings do not mean that every aspect of the catalogue process was found to be perfect.
AGSA identified several weaknesses in the administration and governance of the process.
These included the absence of a formalised policy governing the catalogue, weaknesses around declarations of interests, unclear rules for rescreening materials and insufficiently specific provisions dealing with publishers’ experience and capacity.
However, AGSA found that the screening process had been consistently applied to submissions, which supported its conclusion that the evaluation itself was fair.
The DBE explained that publisher experience had deliberately not been used as a deciding factor because the intention was to assess the quality and curriculum compliance of the materials through an anonymous process rather than give established publishers an advantage because of their track record.
AGSA accepted that explanation, while recommending that the rationale be made clearer in future policy.
Legal opinions also support catalogue process
The independent investigation was not the only review of the controversial process.
According to Mweli’s presentation, legal opinions from the DBE’s internal legal services and external senior counsel Advocate Chris Erasmus substantially supported the legality and fairness of the broader catalogue model.
The external legal opinion considered the process against section 217 of the Constitution, the Public Finance Management Act and Treasury regulations.
It reportedly found no evidence of unlawful procurement or unjustified irregular expenditure and concluded that the catalogue process remained legally defensible and compliant with procurement principles.
Mweli’s presentation described the catalogue as having received a “green light” following the various investigations, audit work and legal opinions.
Lighthouse says damage has already been done
Despite being cleared, Lighthouse says the controversy has come at a significant cost.
Lighthouse director Georgia Groome said the company had not yet received formal communication from the DBE about the investigation’s outcome, despite being interviewed by investigators and providing information requested from the company.
“We have received no communication from the DBE,” Groome said.
She said the months of scrutiny had caused “real emotional, professional and financial harm” to the company’s directors and managers because their credibility and integrity had been questioned.
“This entire saga has overshadowed our achievements and those of our contributors,” Groome said.
She added that the controversy had taken away the opportunity for the company to celebrate its first catalogue submission.
Catalogue remains suspended
Despite the findings clearing Lighthouse of wrongdoing, the dispute is not entirely over.
Gwarube announced that the new Foundation Phase catalogue would remain suspended and that provinces should instead use the existing catalogue when procuring materials for the 2027 school year.
Her decision means the outcome of the investigation has not automatically translated into the immediate implementation of the new catalogue.
The minister has maintained that concerns about the broader process must be addressed while ensuring that millions of learners are not left without learning materials.
The DBE has also indicated that future catalogue processes should be strengthened, including clearer policies, stronger compliance checks and greater transparency around pricing and evaluation methodologies.
