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The officials do not need any company to front on a tender nor do they ask for kickbacks. They just siphon money from the account.

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Sizwe sama Yende

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A district municipality in Limpopo province has proved its financial systems are so porous it has become an easy prey after losing yet another lump sum.

The Sekhukhune District Municipality in Groblersdal has already lost R64.8 million through scams engineered internally by staff members.

In the recent scam that the municipality has suffered, officials allegedly concocted a court order and a writ of execution alleging that an economic development state-owned enterprise, Sekhukhune Development Agency (SDA), had breached a contract with law firm, Letsoalo KC Attorneys. They scored themselves R460 000 cash.

The transaction escaped the hawk’s eye of the municipality’s legal advisers and supply chain officials who failed to discern that the court documents that were left under the door of SDA were fake.

The money was paid into the account Letsoalo KC Attorneys before being distributed to officials and private companies.

On May 30, the officials – Peter Mdluli (senior legal administrative officer), Mantwa Vicky Makanyane (former SDA chief executive officer), Tshidi Elizabeth Kubuzie, Molefi Kubuzie – are expected to appear in the Groblersdal Magistrate’s Court.

They will appear alongside attorney Kgaugelo Letsoalo. Private companies – Mdluli and Trading General Works, Change Strategies Consulting Services and Batheeng Logistics – were also charged for theft and money laundering.

The officials face additional charges of contravening the Municipal Finance Management Act.

All the accused were refused bail on their last appearance in the Groblersdal Magistrate’s Court on March 27.

Sekhukhune district spokesperson, Lemson Moropjane, has indicated in a statement that the municipality would monitor the case.  

However, Sekhukhune municipal manager Meshack Kgwale distanced the district from the latest loss. Kgwale said the SDA was independent from the district municipality and its affairs were run by its own board.

The state-owned entity is, however, wholly owned by the district and its aim is to unlock investments and jobs.

“The SDA is run independently by its board,” Kgwale said.

Other than this scandal, officials have cost the municipality R64.4 million in losses over the past few years due to their greedy and silly mistakes.

·      In December, the district lost an R18 million lawsuit emanatinf from a dispute  two years ago when Lebaka Construction (Pty) Ltd’s contract to build a reservoir and bulk water pipes was terminated.

The owner had allegedly refused to give in to venal officials’ demand for kickbacks. 

Sekhukhune owed Lebaka R10 million for work done, but officials let the matter drag on until interest had accrued to R8 million, and the company was paid because the sheriff was threatening to attach properties.

·      The municipality paid Hexagon Technologies and Projects R11.6 million last year July when it dilly-dallied on paying a claim that was initially R6 million.

The municipality did not fight the matter as its attorney allegedly settled the dispute out of court without any instruction from the council. The law firm in question then lied that the district had lost the matter at a trial but there was no trial that took place.

·      In 2024, the municipality’s officials splurged R30 million on lawyers to recover a paltry R600 000.

The lawyers were hired to recover R5.4 million that the municipality lost when  corrupt officials, working in cahoots with their partners in crime within the bank, channelled the amount to bogus accounts in 2018.

The amount was stolen in tranches of R4.5 million and R900 000.  Police could only recover R4.7 million after freezing the bogus accounts. The council then decided to hire lawyers to recover the remaining R600 000 and the municipality incurred R30 million in legal fees.

·      In the 2018/19 financial year officials fleeced about R19.6 million in separate tranches. They pilfered R5.4 million, then R12 million (over a year) and then R2.2 million.

The R12 million was transferred in R1 million instalments over 12 months, into an account supposedly belonging to the labour department’s compensation fund.

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