Ekurhuleni’s R276m per year empowerment scheme ‘a farce’

A City of Ekurhuleni empowerment scheme, budgeted at R276 million annually to empower township community-based contractors, has done more harm than good to struggling entrepreneurs, while bureaucrats involved in it are said to be living in opulence.

Three whistleblowers this week lifted the lid on the alleged mismanagement of the project, describing it as “a farce and fraud, which disempowers community-based contractors but benefits the bureaucrats at the helm”.

Molly Shekeshe, Esau “Jack” Mzunga and Kenneth Tshabalala sharply contradicted public assurances made last year by mayor Mzwandile Masina and mayoral committee member for finance Nkosindiphile Xhakaza on the municipality’s commitment to empowering previously disadvantaged entrepreneurs.

Shekeshe, Mzunga and Tshabalala claimed their five-year contracts as community-based contractors were abruptly discontinued by Ekurhuleni-appointed development contractors Bvumi and Nokeng-Gundo, community-based contractors, responsible for hiring sub-contractors, budget management and transfer of business skills.

Shekeshe, the owner of Rolihlahla Molly Construction and Projects, initially contracted by Tedcor development contractor, emerged as a successful community-based contractor in Katlehong from 2006 to 2010.

She said: “Tedcor procured a truck for me to use for refuse removal, clearing illegal waste dumping and collecting household waste.

“We were given business skills through a University of South Africa business programme.

“Paid R65,000 a month, with R25,000 going to truck running costs and repayments, we were managed well by the development contractor.”

But this changed when Bvumi Investments took over as the development contractor.

“We worked for nothing and had to pay employees out of our own pockets. After working for eight months, the contract was discontinued and we could no longer pay workers. As a black woman and a single parent, I feel I have been failed by Ekurhuleni officials, who – despite reporting my plight to them – took no action.”

Mzunga’s five-year contract, was also summarily stopped after three months.

“They said we were on probation … I have five children, and I am destitute and unemployed.”

Contracted by Nokeng-Gundo, Tshabalala of Recycling and General Services, who took over from “other fired recycling companies” in 2018, met the same fate last August when the development contractor claimed his performance was poor.

He said: “This entire exercise has led us into poverty. We are dealing with bullies who live in luxury and drive expensive cars at our expense.”

INFO

• Commenting on the claims, Ekurhuleni spokesperson Nhlanhla Cebekhulu said: “Any breach of the contract by either party is dealt with in terms of the signed agreement between them. The city has a contractual agreement with the development contractor and not with the community-based contractors.
• “All the processes followed by the development contractors in dealing with the community-based contractors were in line with their signed agreement.”

– brians@citizen.co.za

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