There is no shortage of controversy surrounding the Musina-Makhado Special Economic Zone (MMSEZ), as highlighted by this newspaper in our front-page article last week. Since then, the Democratic Alliance (DA) in Limpopo has called on the chairperson of the portfolio committee for the Limpopo Department of Economic Development, Environment and Tourism (LEDET) to launch an independent forensic audit into all operational and infrastructure expenditure incurred by the Limpopo Economic Development Agency (LEDA) in relation to the MMSEZ.
In a press statement issued by Mr Jacques Smalle, the DA's provincial spokesperson for Economic Development, Environment and Tourism, he states that the audit must include all tenders and contracts awarded, including their rationale, implementation, and management.
"Our call follows an oversight visit to the MMSEZ sites by the Portfolio Committee on Public Administration, and a report submitted by MMSEZ board chairperson Dr NF Mphephu to the LEDET Committee. Although presented as a progress report, it instead highlights a pattern of repeated failure, shifting timelines, and institutional incapacity," says Smalle.
Key concerns informing their call for an independent forensic audit include:
* According to the MMSEZ board's own submission, R579 million in contracts have been awarded and R155 million spent — yet only one project (internal roads) reached partial implementation, and that too was halted because of litigation and non-compliance with SEZ standards;
* The internal roads were built above ground level, without the necessary development rights, requiring costly ramps and stormwater corrections, and breaching planning laws;
* There is a pattern of repeated appointments of the same service providers, including Tshiamiso Trading, which abandoned a previous site under dispute yet was reappointed for sewer works; and Naledzi Environmental Consultants, DBI, Penyo, and Mamadi & Company, who appear across multiple contracts — raising concerns over potential manipulation of procurement processes;
* Multiple contractors have abandoned sites, citing non-payment, and have lodged legal claims against the MMSEZ; and
* SLM Consulting Engineers were paid R21.7 million, despite their accepted offer being R19.7 million, suggesting a possible breach of PFMA limits on contract variation. Smalle says that in several instances, service-level agreements for professional service providers differ materially and exceed permissible adjustments from original tender submissions.
"The DA's opposition to the MMSEZ's coal-based metallurgical foundation is well documented, and we continue to advocate for a sustainable alternative. Equally, we remain committed to exposing inefficient, ineffective, wasteful, and potentially corrupt governance and expenditure in Limpopo," says Smalle.