Valspan Community Forum blows whistle over tenders at Phokwane Municipality

WHISTLE-BLOWERS from the Valspan Community Forum have requested the Special Investigating Unit (SIU) and the Public Protector to investigate allegations of money laundering, corruption, racketeering and fraud at Phokwane Local Municipality.

Members of the forum, Tito Sebuzo and Elias Chakane, stated that millions of rand in taxpayers’ money had allegedly been wasted on incomplete infrastructure projects, while communities continued to suffer due to repeated service delivery failures.

Among the projects they want investigated is a toilet project at the Jan Kempdorp graveyard.

Sebuzo said an incomplete brick structure had been built on the site, without the two toilets that were supposed to be installed.

He further alleged that a deviation was approved without a council resolution to appoint a contractor to fix sewage spillages in Jan Kempdorp between 2024 and 2025.

“A R2.8 million tender was allegedly awarded to address sewage spillages at 604 Felu location in Valspan to four different companies that formed a joint venture. It is believed that a senior municipal official allegedly received a cash gratification of R500,000 in the process,” Sebuzo claimed.

He said the nature and scope of the work did not justify the value of what he described as an inflated tender.

“The specifications of the tender were to replace a 500-metre to one-kilometre pipeline. Within two months of the work being completed, the pipe continues to leak.”

Chakane added that while R2.3 million was apparently spent to tar Cwaile Avenue between 2022 and 2023, the road remained gravel.

“The Jan Kempdorp stadium is still incomplete. Residents in Masakeng are still making use of pit toilets and do not have access to running water,” he said.

Questions over ‘ghost suppliers’

The former chairperson of the Phokwane technical and corporate portfolio committee, Neo Pitso, raised concerns in January last year over capital projects in Hartswater, Pampierstad and Jan Kempdorp.

Emergency deviations came under the spotlight over the possible transgression of procurement processes.

He advised that a forensic investigation would probe allegations of unauthorised, fruitless, wasteful and irregular expenditure, as well as contracts that were reportedly awarded to “ghost suppliers”.

Pitso recommended that disciplinary steps be taken against an official implicated in the report.

The official was requested to provide a progress report on all capital projects awarded in the Phokwane municipal area since the commencement of his appointment, along with audit reports and documentation explaining why deviations were approved.

Pitso recently stated that a forensic audit was no longer necessary, as he was satisfied with the explanations provided.

“The municipality complied with all requests to supply municipal records and supporting documentation. All reported deviations were properly motivated, documented, and approved in accordance with the Municipal Finance Management Act. The committee is satisfied that such deviations did not amount to financial misconduct, nor did they result in irregular, fruitless or wasteful expenditure,” he said.

He added that any initial concerns regarding alleged flouting of municipal procurement and supply chain management processes were adequately addressed, particularly in relation to the implementation of certain capital projects in Jan Kempdorp, Pampierstad and Hartswater since late 2023.

“The successful, efficient and timely delivery of the projects in question demonstrated that such deviations did not compromise service delivery outcomes, governance integrity or the well-being of communities of Phokwane Municipality,” Pitso said.

He commended Phokwane Municipality, together with technical director Boy Dhluwayo, for the “professional manner” in which municipal projects were implemented, and praised the “prudent management of municipal resources, ethical procurement and conscious efforts to safeguard the integrity of municipal governance”.

Incomplete projects ‘unquantifiable’

In the Auditor-General’s report for the 2024 financial year, several incomplete projects were flagged as areas of concern, with the amount spent on these projects labelled as “unquantifiable”.

The municipality disputes this characterisation of the Auditor-General’s findings.

The projects include:

• Pampierstad bulk water infrastructure phase 2
• Provision of water and sanitation for 608 stands and electrification of 600 stands in Guldenskat, Jan Kempdorp, phase 1
• Masakeng 1,200 sites sewerage reticulation network
• Re-gravelling of internal roads in Pampierstad
• Refurbishment of the Valspan pump station, where the sewage line collapsed at the N18, and electricity installations
• Upgrading of Mangope Road in Pampierstad (0-700 metres)
• Appointment for the development of a new pump station and related bulk sewerage outfall lines in Masakeng, Jan Kempdorp, where a R40.8 million tender was awarded
• Renovation of the Jan Kempdorp testing station
• Emergency upgrade of the Jan Kempdorp wastewater pump station
• Electrification of 420 erven in Donkerhoek and 80 erven in Plakkerskamp in Bonita Park

Phokwane residents ‘living in sewage’

In 2024, parliamentary questions were submitted regarding sanitation infrastructure in Pampierstad that had surpassed its lifespan, along with steps taken to hold Phokwane Municipality accountable for ongoing sanitation failures.

EFF member of the portfolio committee on water and sanitation, Mathibe Mohlala, pointed out that 50 households in Pampierstad were living in hazardous conditions due to inadequate sanitation infrastructure and raw sewage spills.

The Minister of Water and Sanitation, Pemmy Majodina, replied in March that the Department of Water and Sanitation (DWS) had allocated funding for the upgrading of four sewage pump stations at Phokwane Municipality.

“The project cost R25.4 million and was completed in August 2023. The scope entailed the installation of a bulk collector pipeline; supply and installation of manholes and a pump line over a length of 750 metres; upgrading of four sewage pump stations and standby pumps, as well as security fencing,” she said.

Majodina added that a business plan had been received for the replacement of the Pampierstad sewerage reticulation pipelines, with a projected estimate of R156 million.

“Unfortunately, the municipality was over-committed on grant funding and could not fund the R156 million project,” she said.

She explained that refurbishment of the R18 million Hartswater wastewater treatment works (WWTW), the R39 million Pampierstad water distribution system and the R30 million new Masakeng pump station were scheduled for completion between June 2025 and June 2028.

Majodina added that Phokwane Municipality would implement water and sanitation projects between 2025 and 2027 through the Water Services Infrastructure Grant for the refurbishment of the Jan Kempdorp sewage pump station and WWTW.

Criminal cases opened over sanitation issues

Majodina said environmental management inspectors from the DWS had opened criminal cases against Phokwane Municipality to compel the local authority to address ongoing sanitation challenges in Jan Kempdorp and Hartswater.

“DWS has been engaging with Phokwane Local Municipality since 2020 on the poor operations and maintenance of the Pampierstad WWTW, the discharge of untreated effluent into the Harts River, and the lack of skilled process controllers and maintenance personnel. This resulted in the municipality obtaining a Green Drop score of 0% during the 2022 and 2023 audit cycle,” she said.

Public Protector marks investigation as serious

Northern Cape Provincial Public Protector representative Mlungisi Khanya confirmed that the office would assess and investigate the complaint regarding the alleged mismanagement of public funds at Phokwane Municipality.

“The complaint relates to irregularities in the awarding of tenders, specifically the construction of two toilets at a grave site at an exorbitant cost, and the awarding of a tender to address sewage spillages to a contractor with personal ties to a municipal official,” he said.

Khanya added that, given the seriousness of the allegations, the investigation team would prioritise the matter to ensure it was completed within set timelines.

“The office remains committed to upholding transparency, accountability and integrity in the management of public resources,” he said.

SIU spokesperson Kaizer Kganyago said the unit would evaluate the merits of the complaint and await a proclamation from the president before launching an investigation.

Allegations are ‘untruthful misinformation’

Phokwane municipal manager Zithulele Nikani described the allegations as “untruthful, demeaning and defamatory”.

“My responsibility as the accounting officer is to ensure that we run a clean administration and to protect the image of the institution,” he said.

Nikani said he was not aware of any investigation or case opened against any implicated official.

“We have been advised by our attorneys that once the matter is before any statutory body, either for investigation or findings, it will be treated as sub judice.”

He said he was not aware of any request by the portfolio committee on technical and corporate services or the municipal council to conduct a forensic audit or investigate any official at Phokwane Municipality.

Nikani denied any knowledge of an official receiving gratification and committed to launching an internal investigation should any criminal case be opened.

“The Auditor General of South Africa (AGSA) audits all procurement, including capital projects. All procurements were made according to legal prescripts and internal supply chain management policies. There is no project or projects expenditure that was deemed unquantifiable by the AGSA. This is not only misinformation but also misleading. The municipality attended to all queries raised by the AGSA,” he said.

Nikani stated that seven of the outstanding capital projects had been completed.

“Two projects are 95% complete. We are waiting for Eskom to provide an electricity connection to the pump station,” he said.

He added that the municipality had budgeted for the upgrading and refurbishment of the Hartswater water treatment plant.

“This project is funded under the Municipal Infrastructure Grant to the amount of R37 million for the 2025/26 financial year. The tender was advertised with a closing date of December 19. The purpose of the project is to upgrade and refurbish the existing water treatment facility in order to mitigate the current challenges of frequent water interruption and insufficient capacity,” he said.

Nikani said the Jan Kempdorp water treatment plant would be upgraded and refurbished under the Water Services Infrastructure Grant (WSIG) at a cost of R30 million.

“The procurement is finalised and work should start early January 2026. This project will alleviate challenges of non-compliance and raw sewage discharge into the Harts River system.”

He added that the replacement of asbestos sewage pipes in Pampierstad, at a cost of about R7.5 million, was at an advanced stage of procurement.

“The upgrading of wastewater pump stations in Phokwane Municipality was completed in 2023. A business plan for funding was submitted to the WSIG, where R40 million was received to upgrade the sewage pump station. This project was completed in June,” Nikani said.