LIMPOPO – According to an article published by GroundUp, the Hawks are investigating allegations of intimidation and possible corruption linked to the awarding of a R99.3 million construction contract by the Musina-Makhado Special Economic Zone (MMSEZ).

The investigation stems from a complaint lodged by MMSEZ board member Sechaba Nkoana, who claims he was threatened after opposing the awarding of a contract for bulk sewer and wastewater treatment works during a board meeting on May 29.

According to reports, the contract was approved by a narrow six-to-five majority vote, with Nkoana among five directors who voted against the appointment of the successful bidder.

In a formal letter of dissent submitted on June 1, Nkoana outlined several concerns regarding the contractor and the procurement process.

Concerns raised about the contractor

Nkoana alleged that:

• The company had previously abandoned a R200m roads and stormwater project at the MMSEZ after receiving R50.3 million in payments.
• Payment claims had been inflated.
• Some payments failed to comply with required procedures.
• Guarantee funds held at ABSA Bank had been released without MMSEZ approval.

He further referred to previous court findings and correspondence from the Department of Trade, Industry and Competition that reportedly highlighted governance concerns and possible irregular expenditure within the MMSEZ.

A history of disputed contracts

The company awarded the latest contract has previously been linked to a number of disputed public infrastructure projects in Limpopo, including:

• The halted MMSEZ roads and stormwater project.
• A stalled road project in the Makhado Local Municipality.
• A R26m Greater Tzaneen Municipality tender that was declared invalid by the Polokwane High Court in 2019 after errors were identified in the company’s bid calculations.

The alleged threat

Nkoana alleges that on the same day he submitted his letter of dissent, he received a threatening phone call from ANC Limpopo provincial secretary Reuben Madadzhe. He subsequently opened a criminal case at the Polokwane Central Police Station, citing allegations of intimidation and corruption.

DA calls for oversight

Meanwhile, the Democratic Alliance (DA) in Limpopo has called for the MMSEZ board and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) to account before the provincial Legislature’s portfolio committee.

DA provincial spokesperson for Economic Development, Environment and Tourism Jacques Smalle said the allegations are serious and warrant legislative oversight, while emphasising that the Hawks investigation should be allowed to continue without interference.

Smalle said board members of public entities must be able to exercise independent judgement, protect public resources and carry out their fiduciary duties without fear of intimidation or political pressure.

He added that the latest allegations add to long-standing concerns surrounding governance, procurement processes, implementation delays and project management within the MMSEZ.

According to the DA, the portfolio committee should determine:

• Whether proper procurement procedures were followed.
• Whether board members are able to perform their duties independently.
• Whether adequate safeguards are in place to protect public funds.

The allegations remain under investigation and have not been tested in court. No findings have been made against any of the individuals or organisations concerned.

Review Online has attempted to contact Reuben Madadzhe for comment but after multiple attempts, has been unable to reach him.