The Mpumalanga government has pushed back firmly against the DA’s claims that a R128.4-million contract at the Mkhuhlu AgriHub outside Hazyview was unlawfully awarded, dismissing the allegations as a misreading of both law and logistics.
The DA raised concerns over the appointment of Phambili Ngombono Trading to operate the agrihub, a facility designed to source produce from smallholder farmers to supply to hospitals and boarding schools across the province.
In a media statement, DA MPL Tersia Marshall warned that the contract posed “a direct and immediate threat to food security”, arguing that the company lacked mandatory registration with the Agricultural Produce Agents’ Council and did not hold a Fidelity Fund Certificate.
Marshall said the situation “is no longer merely an issue of administrative non-compliance. It is a matter of constitutional significance and human dignity”.
But the agriculture department has rejected this characterisation, insisting the DA had conflated different regulatory frameworks. According to department spokesperson Zanele Shabangu, the operator never had to meet the conditions cited by the DA.
“The operator was not required to be registered as a market agent or hold a Fidelity Fund Certificate at the time of appointment,” Shabangu said. “These requirements apply to commission-based agents, whereas the AgriHub operates on a principal-trader model.”
She added that the procurement process itself followed strict compliance checks.
“Prior to the appointment, the department conducted a comprehensive due diligence process as part of a formal competitive bidding evaluation, including an assessment of technical capacity and previous experience,” she said.
Shabangu further defended the project’s operational model, describing it as a deliberate shift from failing systems.
“The agrihub is designed as an aggregation and logistics centre under the government nutrition programme framework, not as a regulated fresh produce market,” she said. “The operator purchases produce directly from farmers, takes ownership and pays within seven days, ensuring a stable supply chain.”
She maintained there was no basis to terminate the contract.
“There is currently no intention to suspend or terminate the contract, as the operator is meeting its primary mandate of supporting smallholder farmers and ensuring consistent supply to public institutions,” she said.
When contacted for comment, Phambili Ngombono Trading director Moses Magagula said his service level agreement restrains him from commenting in the media, referring questions to provincial authorities.
The office of Premier Mandla Ndlovu also moved to contain the political fallout, signalling that the matter would be handled through administrative channels rather than executive intervention.
Spokesperson George Mthethwa confirmed that the DA’s complaint had been received. He stressed that governance processes would guide any response. “The premier’s primary concern is ensuring an uninterrupted, safe and reliable food supply to public institutions within the framework of applicable laws and procurement processes,” he said.
“Any request for executive intervention must be considered in line with established governance processes and the separation of roles.”
Mthethwa said the matter had already been escalated internally for verification.
“The issues raised have been referred to the relevant administrative authorities for verification of the specific allegations and a factual report on compliance and contractual performance,” he said.
The provincial government also cautioned against what it described as politically charged interpretations of compliance issues, particularly in the run-up to local government elections.
Officials argue that corporate administrative compliance, market-agent regulation and contract performance are distinct matters that cannot be collapsed into a single narrative of illegality.
Marshall, however, remains adamant that the province is facing a governance crisis, insisting that “no child in a boarding school and no patient in a hospital should go hungry because of administrative failure”.
- The Mpumalanga government rejects DA allegations that a R128.4-million contract for the Mkhuhlu AgriHub was unlawfully awarded, calling the claims a misunderstanding of law and logistics.
- The DA’s concern centers on Phambili Ngombono Trading’s appointment, claiming the company lacked necessary registration and certification, threatening food security in hospitals and boarding schools.
- The agriculture department states the operator was not required to be registered as a market agent or hold a Fidelity Fund Certificate due to the AgriHub’s principal-trader model, backed by comprehensive due diligence and a competitive bidding process.
- The provincial government emphasizes administrative handling of the complaint, maintaining the operator is fulfilling its mandate and cautioning against politically motivated interpretations before local elections.
- DA MPL Tersia Marshall insists the situation is a governance crisis impacting constitutional rights and human dignity, while the government stresses ongoing investigation and adherence to governance processes.
