The Limpopo municipality is in hot water after it paid a contractor more than 20 million rand for a road project that was allegedly left unfinished. Now, in light of this, the Ephraim Magale Local Municipality Council is divided over the lost funds, while opposition parties are calling for tougher action against those accused of corruption. The 3.2km road project in Muhook, outside Marble Hall, is more than 90% complete, but the contractor allegedly pocketed the entire contracted budget of 22 million rand and walked out before the project was completed. READ ALSO: Fraud allegations rock Sekuhune municipality amid agency probe This week…
The Limpopo municipality is in hot water after it paid a contractor more than 20 million rand for a road project that was allegedly left unfinished.
Now, in light of this, the Ephraim Magale Local Municipality Council is divided over the lost funds, while opposition parties are calling for tougher action against those accused of corruption.
The 3.2km road project in Muhook, outside Marble Hall, is more than 90% complete, but the contractor allegedly pocketed the entire contracted budget of 22 million rand and walked out before the project was completed.
READ ALSO: Fraud allegations rock Sekukhune municipality amid agency probe
The municipality confirmed this week that it had placed its director of infrastructure services on warning suspension.
“This comes after looking into allegations of misconduct made against him,” said municipal spokesman Percy Moaghy.
He said the council made the decision to suspend the director to allow the municipality to complete an internal investigation into the matter.
The municipality also confirmed that the director had been suspended with pay.
But the move drew mixed reactions from opposition parties, including the South African Bolshevik Party.
The party’s secretary general, Seun Magotji, said yesterday: “Perhaps we should start by saying that Ephraim Magale municipality is one of the poorest municipalities in the country.
“But ironically, with no good financial strength, he still invested 80 million rand in the now defunct VBS Mutual Bank.
“Despite this ugly financial problem, the same council emptied the municipal purse through a questionable tender process.”
According to a report compiled by the council’s municipal public accounts committee, Magotji said the contractor was paid the full contract amount of R22,486,610 before the project was incomplete.
READ MORE: ‘It’s like stokvel’: Limpopo council’s sneaky secrets
“What’s worse, the contractor was overpaid by 116,678.66 rubles.
“I can confirm that this lucky contractor was paid R22,605,318 for abandoning the project. “It’s not only funny, it’s alarming,” he said.
“We are concerned that this ANC-led council is putting its reputation on the line by placing the principal on warning suspension while our people suffer.
“The report of the municipal committee on public accounts is clear. Fraud has been committed and remedial action must be taken. The director should be punished with a significant prison term instead of a simple suspension,” Magotzhi added.
The ANC in Limpopo was furious to hear the news.
“Although we have not been officially informed at this stage of the suspension of the director of the municipality, Ephraim Magale, we support strong action against all those involved in official crimes, regardless of their political affiliation.
“Appointment of forensic examination [team] unearthing bad governance is fully supported and will in no way waste taxpayers’ money.
“What would be a waste if the forensic examination [team] appointed, but its findings and recommendations are not fully implemented,” Limpopo provincial spokesperson Jimmy Machaka said yesterday.
READ MORE: More than 18 million rand disappears from the accounts of Sehuhune District Municipality
Machaka said the ANC in Limpopo opposes any form of corruption in all its institutions and believes that any leader accused of corruption should step aside.
“We call on the law enforcement agencies to take action against any member, leader or government official involved in corrupt activities as far as tenders are concerned.
“We equally call on all municipalities, departments and government agencies to be fair and transparent in conducting tenders,” Machaka added.
