The Gauteng Department of Infrastructure Development (DID) has warned that disputes between contractors and subcontractors must not be allowed to derail the completion of Semphato Secondary School in Soshanguve, as it prepares to investigate allegations linked to the delayed project.
The department announced that it will launch an official investigation into claims surrounding the construction of the school, while maintaining that there is currently no evidence of irregular expenditure, over-certification or financial losses arising from the payment certification process.
Yahweh 1 Construction vs Mkhize Gcwabe Properties
At the centre of the dispute are Yahweh 1 Construction and Projects, the main contractor appointed to deliver the project, and its former subcontractor, Mkhize Gcwabe Properties (MGP).
Semphato Secondary School is one of five smart school projects launched by the Gauteng government. However, it remains the only project that has not been completed after missing several deadlines since December 2025.
The department said payment for work completed on site is only processed after professional certification and verification, in line with contractual requirements and financial governance processes.
“The prevailing disputes between Mkhize Gcwabe Properties and Yahweh 1 Construction and Projects should not be used to exploit and destabilise the situation on site,” the department said.
It further cautioned against using the dispute to damage the department’s reputation, describing MGP as a “disgruntled and aggrieved former subcontractor”.
According to the department, four of the five delayed smart school projects have already been completed through a turnaround strategy aimed at unlocking stalled infrastructure developments. These include Dr WK du Plessis LSEN in Springs, Rus-ter-Vaal in Emfuleni, Nancefield Primary School in Eldorado Park and Simunye Secondary School in Westonaria Borwa.
Officials said the performance of the main contractor is being closely monitored through regular site visits conducted by the department’s infrastructure A-Team, as well as through its Infrastructure Delivery Platform (iDEP), which provides real-time reporting on project progress.
MGP ‘rescue contractor’?
The department has also rejected claims made by MGP about its role on the project, saying the company was appointed solely as a subcontractor by Yahweh 1 and has never had a direct contractual relationship with DID.
“As such, allegations that MGP is the rescue contractor appointed by the Department of Infrastructure Development are incorrect and misleading,” the department said.
According to documents provided by Yahweh 1, the private arrangement between the contractor and MGP ended in July 2025, meaning the subcontractor has not been active on site for almost a year.
In a letter dated 20 August 2025 to DID head Rufus Mmutlana, Yahweh 1 director Phumeza Mangcu formally distanced the department from the dispute, stating that the agreement between Yahweh 1 and MGP was a private commercial arrangement entered into at the contractor’s own discretion and risk.
The company said the agreement created no contractual, financial or legal obligations for the department and that any disputes, liabilities or claims arising from the arrangement remain the responsibility of Yahweh 1 and MGP.
Yahweh 1 also confirmed that the agreement was terminated through its legal representatives on 10 July 2025 and accepted full responsibility for the completion and delivery of the Semphato Secondary School project.
Commitment to complete project
Despite the ongoing dispute, the department said it remains committed to completing the school and safeguarding public funds.
Officials said their immediate priority is to conclude the necessary contractual processes before determining the next steps, including the possible appointment of a replacement contractor should this become necessary.
The department added that it would be premature to provide a revised completion date for the school until the contractual processes have been finalised and a new implementation programme approved.
Meanwhile, the investigation is expected to examine the allegations raised by MGP and determine whether any further action is required. The department has indicated that should credible evidence of misconduct, irregularities or unlawful conduct emerge, appropriate action will be taken.
- The Gauteng Department of Infrastructure Development (DID) is investigating delays at Semphato Secondary School in Soshanguve amid disputes between contractor Yahweh 1 Construction and subcontractor Mkhize Gcwabe Properties (MGP).
- The department denies any irregular expenditure or financial mismanagement related to the project and emphasizes payments are made only after proper certification and verification.
- MGP is described as a "disgruntled former subcontractor" with no direct contractual ties to DID, and claims it is a "rescue contractor" have been rejected by the department.
- Yahweh 1 has confirmed the termination of their agreement with MGP in July 2025 and accepted responsibility for completing Semphato Secondary School.
- The department remains committed to completing the school, will finalize contractual processes before setting a new timeline, and will take action if the investigation uncovers credible misconduct.
At the centre of the dispute are Yahweh 1 Construction and Projects, the main contractor appointed to deliver the project, and its former subcontractor,
Semphato
"
It further cautioned against using the dispute to damage the department's reputation, describing MGP as a "disgruntled and aggrieved former subcontractor".
Officials said the performance of the main contractor is being closely monitored through regular site visits conducted by the department's infrastructure A-Team, as well as through its Infrastructure Delivery Platform (iDEP), which provides real-time reporting on project progress.
"As such, allegations that MGP is the rescue contractor appointed by the Department of Infrastructure Development are incorrect and misleading," the department said.
In a letter dated 20 August 2025 to DID head Rufus Mmutlana, Yahweh 1 director Phumeza
Yahweh 1 also confirmed that the agreement was terminated through its legal representatives on 10 July 2025 and accepted full responsibility for the completion and delivery of the Semphato
Despite the ongoing dispute, the department said it remains committed to completing the school and safeguarding public funds.
Officials said their immediate priority is to conclude the necessary contractual processes before determining the next steps, including the possible appointment of a replacement contractor should this become necessary.
Meanwhile, the investigation is expected to examine the allegations raised by MGP and determine whether any further action is required.
