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It is likely that a further R15 million will need to be paid before the road is finished.
Picture: iStock
The Roads Agency Limpopo (RAL), a subsidiary of the Limpopo department of public works, roads and infrastructure, is being investigated for paying a contractor a R20 million retention fee for a project that has missed completion deadlines for more than three years.
RAL is responsible for the construction of roads in Limpopo.
A retention fee is described as a percentage of the contract value, which is held by the employer as a security for the quality of the workmanship and material. It is usually paid months after the successful completion of a project.
R20m paid despite missed deadlines
Through its acting CEO, Makhitha Chesane, RAL confirmed that the R20 million payment was made to the company. He said forensic investigations are at an advanced stage. The money was allegedly paid to a company called Amawakawaka Projects.
The company is said to have been contracted to convert a 29km road from gravel to tar in Sekgosese in the Greater Letaba local municipality, budgeted to cost R400 million. However, only R3.5 million is left, with two bridges and nearly 10km left to be tarred.
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An expert in the construction industry, who asked to speak anonymously, said that for each 1km, the government must be prepared to pay about R15 million.
Project manager says he’s done nothing wrong
The R20 million was allegedly paid to the company during the height of the Covid-19 pandemic in the 2021-22 financial year. The road project starts in Morobeng and ends at Wholesale Plaza in the Sekgosese area.
It was expected to be completed in August 2022, but the deadline was missed several times.
The payment was allegedly facilitated by the project manager, Musa Ndlovu, and his principals at RAL. Ndlovu refused to comment, claiming that although he believes he has done nothing wrong, he would prefer to first give his reasons for signing off the payment to his bosses before speaking to the media.
The payment remained undisclosed for three years and only came to light during a meeting of the Greater Letaba local municipality on Wednesday.
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In 2022, President Cyril Ramaphosa was shown the project by former premier Stan Mathabatha, RAL officials and ANC ward councillors. The former CEO, Gabriel Maluleke, resigned from RAL after a protracted court dispute with the agency. His employment contract officially ended on 31 December 2024, with RAL setting aside his dismissal and suspension.
Mathabatha, who is now the Deputy Minister for Land Reform and Rural Development, promised Ramaphosa that the project was on track and would be completed before the August 2022 deadline.
Investigation underway
Asked for comment, RAL CEO Makhitha Chesane said he only became aware of the payment on 4 July 2025, when he was inspecting the site. Chesane said he had to report the matter to the MEC first.
“RAL cannot tolerate corruption. We are just waiting for the outcome of the forensic investigations to apply consequence management,” he said.
At the project site, Premier Phophi Ramathuba confirmed that forensic investigations into the project were underway. She said the money paid to the contractor was part of the forensic investigations, launched by public works MEC Ernest Sebataolo Rachoene when he took over the department on 18 June 2024.
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A few months after Rachuene joined the department, several RAL board members resigned. A new board was appointed months later.
“I have instructed MEC Rachuene and Chesane to investigate all the brouhaha taking place at the project. They must see if the relationship between the contractors and RAL is mendable or irreparable. If not, I give them only four weeks to appoint new contractors and new engineers to complete the project within a period of 12 months,” Ramathuba said.
