Where did the millions go?

Public protector orders SIU probe into Bapo Ba Mogale fund

20 June 2017 - 06:53
By SIPHO MABENA
Supra Mahumapelo. File photo.
Image: SIMON MATHEBULA Supra Mahumapelo. File photo.

The public protector has ordered North West premier Supra Mahumapelo to approach the Special Investigating Unit to probe more than R255-million in irregular payments related to mining royalties missing from Bapo Ba Mogale's development account.

Busisiwe Mkhwebane found the largest amount, R115-million, was splurged on the construction of a palace for the late Chief Bob Mogale in Bapo village, near Brits.

This was well above the budgeted R29.8-million, with Mkhwebane saying there was gross misuse of funds by the North West department of local government and traditional affairs. The amount exceeded the budget by R85-million and no reasons were advanced.

The report reveals how R21.5-million was paid to Ndzalama Interiors for decoration of the palace and R8.7-million to consultants ProjexConsult for construction.

"The process of the procurement in the construction of the palace was done without going out on tender or calling for quotations," Mkhwebane said.

In the much-awaited report she released in Pretoria yesterday, Mkhwebane also detailed how:

  • R20.2-million was paid to Nkambule and Associates for construction of trunk roads;
  • Payments of more than R8.1-million and R4.1-million were made to Abel Dlamini and Junius Moloto respectively during their tenures as administrators, as well as R719534 Moloto paid himself;
  • R3.7-million was paid to Madisa and Associates CC for marketing and communication services;
  • Payments of R5.1-million were made to Mosiamise Business Consulting but there was no proof of actual work being carried out;
  • R36.3-million was paid to Matlapa Construction Consulting;
  • Payments of more than R4-million were made to Dire Accounting Practice CC but it failed to deliver the implementation of the Enterprise Resource Planning System;
  • Payments of more than R8-million were made to Thaba Consulting, who were project managers for the construction of a multipurpose centre, and R13-million to Queen's Building Construction CC who were also project managers. Another R5.2-million was paid to Thaba Consulting Engineers; and
  • More than R15-million was paid to Kgatelopele Consulting Engineers for the building of the Segwaelane Community Centre, which was found to be poorly constructed.

Mkhwebane said the unit should determine which funds could be recovered through a civil process.

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