Limpopo development agency disbanded amid R460k fraud allegations

The Sekhukhune Development Agency (SDA) in Limpopo has been disbanded following allegations of fraud. This comes after the agency claimed two months ago that it paid R460 000 to a law firm that represented it in a recent legal matter.

The agency further stated that the payment was made after a court order was issued by the High Court in Pretoria, ordering it to pay the law firm the money that was owed to it. But it has emerged that the stamp used for the court order was assigned to a former court registrar, who resigned from the office of the chief justice four years ago.

The agency is a subsidiary of the Sekhukhune district municipality. It was formed in 2010 with the primary objective of attracting investors and creating jobs for local unemployed youth, women and people living with disabilities.

The region is regarded as one of the poorest in the country with the majority of its population of 1.2 million living in abject poverty. Two weeks ago, a special council sitting at the Greater Sekhukhune district municipality took the decision to disband the agency.

Executive mayor Julia Mathebe said the Sekhukhune Development Agency had dismally failed to live up to its objectives. Other reasons given were that there was protracted infighting among committee members and fraud allegations against the agency.

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But an investigation by The Citizen reveals that the agency may have lied to the public about being compelled by the court to pay the nearly R500 000 to the law firm. In a letter seen by this newspaper from the registrar of the High Court of South Africa, Gauteng Division in Pretoria, the agency’s claims are disputed.

The letter reads as follows: “We received a court order dated 20 August, 2020, ordering payment of R460 000, which was stamped and signed on 10 September, 2020, and a letter of a writ for execution, stamped and signed on 18 March, 2022.

“The stamp used on both documents was assigned to the former registrar, Mr M Dwasa, who left on 30 June, 2018. “The stamp was used mainly for issuing and filing documents, prior to the use of the electronic system in court.

“The high court has a specific court stamp used to stamp all court orders and writs of execution for security purposes.

“The stamp used on both documents is thus an incorrect stamp and may not be used at all as Mr M Dwasa is no longer in the employ of the office of the chief justice.

“We confirm that this order and writ are not valid court documents and thus are fraudulent in nature,” stated the letter in part.

The Bolsheviks Party of South Africa, led by Seun Mogotji, was the first organisation to spill the beans on the alleged corruption in the Sekhukhune Development Agency. Yesterday, Mogotji said it was now up to the police to do their job.

“Everyone involved in this must be arrested and prosecuted. “The letter from the court clearly outlines that the court order was forged. “Who forges a court order and hopes to get away with it?” he asked.

Mogotji said the party and the public were hoping to see some arrests of those who were allegedly involved, sooner rather than later. “We won’t let this one slide,” he added.

“A crime was committed and all must be treated equally before the law.”

Limpopo police spokesperson Brigadier Motlafela Mojapelo confirmed that a case of fraud had been laid against the agency on 3 June, at Polokwane police station.