Limpopo municipality’s council divided over lost funds as top official suspended

A Limpopo municipality is in hot water after paying a contractor more than R20 million for a road project allegedly left incomplete.

Now, in light of this, the Ephraim Mogale local municipality’s council is divided over the lost funds, with opposition parties calling for harsher steps to be taken against those accused of corruption.

The 3.2km road project in Mooihoek, outside Marble Hall, is more than 90% complete but the contractor has allegedly pocketed the full contractual budget of R22 million and walked away before the project is complete.

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This week, the municipality confirmed it has placed its director for infrastructure services on precautionary suspension.

“This was after considering allegations of misconduct levelled against him,” municipal spokesperson Percy Moagi said.

He said the council took the decision to suspend the director in an effort to allow the municipality to finalise internal investigations on the matter.

The municipality further confirmed the director was suspended with pay.

But the move prompted mixed reactions from opposition parties, including the Bolsheviks Party of South Africa.

Party secretary general Seun Mogotji said yesterday: “Perhaps we should start by indicating that Ephraim Mogale municipality is among the poorest municipalities in the country.

“But surprisingly, with no sound financial muscle, it still went on to invest R80 million in the now defunct VBS Mutual Bank.

“Despite this ugly financial problem, the same council went on to empty the municipal purse through a dubious tendering process.”

According to a report compiled by the council’s municipal public accounts committee, Mogotji said the contractor was paid the full contract amount of R22,486,610 in advance before the project was incomplete.

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“Worse, the same contractor was overpaid by R116,678.66.

“I can confirm that this lucky contractor was paid a total of R22,605,318 for abandoning the project. “This is not only laughable but also concerning,” he said.

“We are concerned that this ANC-led council is grandstanding by placing the director on precautionary suspension while our people are suffering.

“The municipal public accounts committee report is clear. Fraud was committed and consequence management must be applied. The director must be made to face a hefty jail sentence instead of a mere suspension,” added Mogotji.

The ANC in Limpopo was livid on hearing the news.

“While we were not officially briefed about the suspension of the director in Ephraim Mogale municipality at this stage, we support decisive actions against all persons involved in malfeasance, irrespective of their political standing.

“Appointment of a forensic [team] to unearth the maladministration is fully supported and will not in any manner amount to a waste of taxpayers’ monies.

“What will amount to a waste is when a forensic [team] is appointed but its findings and recommendations are not implemented fully,” ANC Limpopo provincial spokesperson Jimmy Machaka said yesterday.

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Machaka said the ANC Limpopo was against any form of corruption in all its institutions and was of the view that any leader charged for corruption must step aside.

“We are calling upon law enforcement agencies to act against any member, leader or government official found to be involved in corrupt activities as far as it relates to tenders.

“We are equally calling all municipalities, departments and state entities to be fair and transparent in the adjudication of tenders,” Machaka added.