The Mpumalanga DA’s leader, Jane Sithole, the DA’s chairperson, Bosman Grobler MPL, and the Mpumalanga DA’s deputy leader, Trudie Grové-Morgan, held a press briefing at their offices on Tuesday March 12 to address the alleged irregularities in connection with the Mpumalanga International Fresh Produce Market (MIFPM), which is currently under construction, and within the Mpumalanga Economic Growth Agency (MEGA).

According to the DA, the MIFPM is about to be another cash cow for the notorious provincial tender cartel. “We have learnt through MEGA’s third quarter report that the developer and landowner of the MIFPM will ultimately be responsible for rates and taxes on the property, as well as obligations flowing from the service level agreement entered with the City of Mbombela. Our concern is that the MIFPM will have the same outcome as the MEGA office block in Mbombela, where MEGA currently rents this office from the tender cartel for an exorbitant amount of R1 459 631 plus a facilities management fee of R193 553 per month,” said Grobler.

“In 2022, the DA revealed that a tender cartel had infiltrated the Mpumalanga government infrastructure projects, and not only do they get tenders to develop and construct, but now the tenders are stretched further into rental and facilities management services.”
Sithole said when they present evidence in black and white, they expect the authorities to at least look at it. “We submit something, and say this is not right and quote the law and legislations of this country.”

The MEC for finance, economic development and tourism, Nompumelelo Hlophe, said during the provincial budget speech: “The budget for the Department of Economic Development and Tourism amounts to R1.413b. Of this amount, R167.7m is for completion of the MIFPM. The Department of Agriculture, Rural Development, Land and Environmental Affairs [Dardlea] is allocated R1.513b. Included in this allocation is R54m to operationalise the MIFPM.”

When asked about how the money allocated would be spent and why any money is yet again injected into a project that has missed its completion date, Hlophe said the MEC for agriculture is still going to present the budget speech. “The MECs for finance and agriculture have agreed that the project for MIFPM must be finished in this financial year.”

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Lowvelder contacted the Department of Agriculture with enquiries; Zanele Shabangu, the Dardlea spokesperson, referred the newspaper to the Department of Public Works, Roads and Transport (DPWRT).

Bongani Dhlamini, the public works spokesperson, said: “The progress on-site is currently estimated to be at 97% and the majority of physical work has been completed. The department has since advised the relevant department to prepare for takeover of the facility in the next month, subject to availability of permanent electricity connection and water supply.”

When asked about how much funds were needed to complete the project, Dhlamini said: “Funds to complete the project are strictly aligned to the approved contract sum less expenditure today. Given the magnitude of the project, amounts involved on the final account stage as well as project close-out are significant.”

On allegations that the MIFPM is just another cash cow for the Mpumalanga tender cartel, he said: “When the department was requested to assist with completion of the project, Enza Construction had already been appointed as main contractors on the project. No other company has been appointed either by us or other departments in the administration to act as main contractors on the project.”

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By the time of publishing, MEGA had not yet responded to the newspaper’s enquiry, although a statement was released on Thursday March 14 on behalf of MEGA by Madlozi Isaac Mhlangu. It reads: “In May 2018, the Department of Economic Development and Tourism entered into a service delivery agreement with MEGA to establish and operationalise the MIFPM. In August 2018, public works granted MEGA the right to use the land. MEGA is currently a project developer and land user. Construction of the MIFPM was transferred to the DPWRT in November 2020, and any further commitments post-January 2021 cannot be attributed to MEGA. The MEGA head office building was constructed by a developer using private sector funds. MEGA leases the building for an initial term, renewable with an option to purchase.”