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Contracts worth R579 million have been awarded, and R155 million spent — yet only one project (internal roads) reached partial implementation.  This project was also halted due to litigation and non-compliance with SEZ standards. – Jacques Smalle,  Limpopo DA spokesperson Economic Development, the Environment, and Tourism.

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Sizwe sama Yende

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All tenders awarded in the construction of the R247 billion Musina-Makhado Special Economic Zone (MMSEZ) in Limpopo should be subjected to a forensic investigation.

The DA Limpopo has written to the chairperson of the Portfolio Committee for Economic Development, Environment and Tourism, Mapula Mokaba, to request that Limpopo Economic Development and Tourism MEC, Tshitereke Matibe, commission an independent forensic audit into all operational and infrastructure expenditure incurred by Limpopo Economic Development Agency (LEDA) and MMSEZ (Pty) Ltd.

The DA’s call follows concerns that the construction of the SEZ  has ground to a halt.

The MMSEZ’s aim was to drive industrialisation and attract investment through a Special Economic Zone (SEZ) model that incentivised investors in order to lure them into establishing businesses in the 11 000 ha land between Musina and Makhado.

Many SEZs are proposed to be built in various parts of the country such as Mpumalanga. Limpopo has another one approved in the chrome and platinum mining Fetakgomo Tubatse Local Municipality in Burgersfort.

DA Provincial Spokesperson for Limpopo Economic Development, the Environment, and Tourism  Jacques Smalle said: “Nearly a decade since its designation, the project remains stalled, mired in irregularities, governance failures, and legal disputes.”

Smalle said that the audit must include all tenders and contracts that had been awarded, including their rationale, implementation, and management. 

The DA’s call  follows an oversight visit to the MMSEZ sites by the Portfolio Committee on Public Administration and a report submitted by MMSEZ board chairperson Dr Ndweleni Mphephu.

“Although presented as a progress report, it instead highlights a pattern of repeated failure, shifting timelines, and institutional incapacity,” Smalle said.

Smalle said that the DA’s key concerns informing its call for an independent forensic audit were that: 

•  Contracts worth R579 million have been awarded, and R155 million spent — yet only one project (internal roads) reached partial implementation.  This project was also halted due to litigation and non-compliance with SEZ standards;

• The internal roads were built above ground level without the necessary development rights, requiring costly ramps and stormwater corrections, and breach of planning laws;

Smalle said that there was a pattern of repeated appointments of the same service providers such as Tshiamiso Trading, which abandoned a previous site under dispute, yet was reappointed for sewer works. 

Naledzi Environmental Consultants, DBI, Penyo, and Mamadi & Company, appeared across multiple contracts, raising concerns over potential manipulation of procurement processes, he added.

Smalled said other concerns were that:

• Multiple contractors have abandoned sites, citing non-payment, and have lodged legal claims against MMSEZ;

• SLM Consulting Engineers were paid R21.7 million, despite their accepted offer being R19.7 million, suggesting a possible breach of PFMA limits on contract variation;

• In several instances, service level agreements for professional service providers differ materially and above permissible adjustments from original tender submissions. 

Smalle added that the DA’s opposition to the MMSEZ’s coal-based metallurgical foundation was well documented, and the party would continue to advocate for a sustainable alternative.

“Equally, we remain committed to exposing inefficient, ineffective, wasteful, and potentially corrupt governance and expenditure in Limpopo,” he said.