Johannesburg- A forensic report that was commissioned during the process of establishing Enoch Mgijima local municipality in 2016 has lifted the lid on the culture of multiple malfeasances, which has characterised the embattled municipality.
Following the 2016 local government elections, Enoch Mgijima municipality was established through the amalgamation of three tiny municipalities, including Lukhanji, which consisted of the town of Komani; Tsolwana, which consisted of Takarstad; and Nkwanca, which consisted of the town of Molteno.
The municipality has been at the centre of controversy since its officials unashamedly unveiled a piece of ground with few scaffolding grandstands, and claimed it to be a stadium worth R15-million in a place called Lesseyton, a small area inhabited by a poor community, where there is no proper running water, sewage system and electricity.
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The construction of the so-called stadium and the awarding of this tender and its costs are now the subject of an investigation by the Hawks.
Hawks spokesperson Brigadier Nomthandazo Mbabo said: “The probe is still in its infancy stages and as soon as all statements and necessary documents have been obtained and perused, the matter will be referred to the Director for Public Prosecutions for the decision to prosecute.”
Political parties descended on Lesseyton and turned the shameful pitch into a political battleground.
The Eastern Cape cooperative governance and traditional affairs MEC Xolile Nqatha demanded a report from the Enoch Mgijima speaker within 48 hours and promised that heads would roll.
But the chairperson of the DA federal council, Helen Zille, remained unconvinced, saying that “promise of action”, which often turns to none, was the general chorus of the ANC-led government.
She said: “They do hundreds of investigations. Whoever lands up in jail because of their investigations?”
She branded the project as a get-rich-quick scheme facilitated by the ANC and its cadres.
“I wonder if the people of Lesseyton were asked what their priorities are because this is a priority of an ANC cadre who wants to make a lot of money out of it and get rich.
“Kgalema Motlanthe, the former president, said every project in the ANC is designed to make somebody rich and everyone who comes and sees the so-called Lesseyton stadium will see exactly what Motlanthe meant,” said Zille.
The Deloitte forensic report revealed bad practices that dominated the three smaller municipalities, in particular Nkwanca, such as hand-picking service providers, poor budget practices, ballooning costs from the original price at the time of procurement, lack of quality assurance and value for money for the end product.
It is alleged that even with the construction of the Lesseyton field, the contractor, Thalami Civils, was hand-picked after scoring the lowest during the tender bid.
As a consequence of the conduct by the former municipal officials at Nkwanca, Enoch Mgijima was ordered to pay a debt of R21-million it inherited from Nkwanca to Milowo Trading Enter-prises for the building of the Sterkstroom Community Hall.
The cost of building the hall ballooned from the original budgeted amount of just R7.7-million, and the contractor that was first hand-picked for the project in 2008, Vuba Imagineers cc, abandoned the site and in 2012 Milowo Trading Enterprises was appointed as the new contractor.
After completing the project, the municipality had no money to pay the new contractor and therefore forced Milowo’s hand to take court action in order for the Enoch Mgijima municipality to pay him.
In 2018, the court granted Milowo an attachment order of Enoch Mgijima municipality assets.
Following the attachment order, a fleet of 44 vehicles and other Enoch Mgijima assets were auctioned.
The municipality’s debt to Eskom for electricity has doubled to R600-million, it was half of that amount when the three local municipalities amalgamated.
A prominent businessman in Komani, Ken Clarke, a founder of Twizza Soft Drinks, lambasted Enoch Mgijima municipality for its poor financial prioritisation.
“The level of prioritisation is nowhere to be found.
“It is shocking how the municipality cannot find R35-million to upgrade its transformers and replace some of its electric cables, which is critical to stabilising electricity supply for the businesses in town but is able to find R22-million for a piece of ground.”
Clarke is running in the upcoming municipal elections as an independent candidate. He said he had taken a decision to fight from within.
“I cannot move my businesses from here because of dysfunctional municipal services. When you have built a factory, you kinda nailed yourself to the ground. It’s easier to change the municipality than to relocate a business.”
Meanwhile, the ANC is still pinning its hopes that the electorate will grant it another term to govern Enoch Mgijima municipality, and on Sunday the Deputy Minister in the Presidency for State Security, Zizi Kodwa, will descend on the town to extinguish the fires raging over the stadium that never was.
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