Mpumalanga’s capital in hot water

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12-05-2025
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Seven pricey tenders in the Mpumalanga’s capital, the Mbombela Local Municipality (MLM), are going under the microscope amid allegations of serious maladministration.

President Cyril Ramaphosa signed a proclamation on 5 May, authorising the Special Investigating Unit (SIU) to probe the affairs of the municipality and recover any losses the State suffered between February 2015 and May 2025.

SIU spokesperson Kaizer Kganyago said that the proclamation authorises the unit to investigate “serious maladministration in connection with seven tenders involving the affairs of the MLM.”

The SIU will probe any related unauthorised, irregular, fruitless or wasteful expenditure incurred by the Municipality or the State in relation to:

• PRE/040/14/MP – Investigation and legal services


• DHS/112/15/MP – Installation of municipal civil engineering services, construction of RDP housing units, and project management at Emjindini Extensions 15–19


• NLM-TS-003/2015/16 – Engineering services


• R538 Hazyview–Numbi Gate Project – Construction-related goods and services


• Bid 26/2015 – Appointment of consultants for Strategic Programmes and Projects Support Unit


• Bid 72/2017 – Turnkey Energy Efficiency and Demand Side Management Programme


• Tender 116/2018 – Construction of Phase 1, Nsikazi North Bulk Water Scheme

Kganyago said that the SIU probe will investigate potential irregularities in procurement and contracting processes. 

This includes examining if these processes were not fair, competitive, transparent, equitable, or cost-effective, or if they violated relevant legislation, guidelines, or instructions from the National or Provincial Treasury.

The SIU will also scrutinise any unauthorised, irregular, or wasteful expenditure by the Municipality or the State, and seek to determine if any unidentified payments received by the Municipality were misappropriated.

Furthermore, the investigation will encompass any irregular, unlawful, or improper conduct by officials or employees of the Municipality, its suppliers or service providers, or any other implicated individuals or entities.

“Beyond investigating maladministration, corruption, and fraud, the SIU is committed to identifying systemic failures and recommending measures to prevent future losses,” said Kganyago.

The SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.

The unit is also authorised to initiate a civil action in the High Court or a Special Tribunal.

The CoM’s spokesperson, Joseph Ngala, said the municipality learnt about this investigation through the media statement.

“If you look at the tenders being investigated, only two of the seven were issued by the municipality (six and seven).”

“We won’t comment now except to indicate that we take note of the proclamation and will co-operate with the unit charged with this responsibility. The SIU is better placed to expand on this investigation,” said Ngala.

Finances under the microscope

Mbombela, which consists the city of Mbombela/Nelspruit, Barberton, Hazyview, Kaapschehoop, Skukuza, White River, was formed in 2016 by merging the Mbombela and Umjindi local municipalities. 

Home to around 820,000 residents and beautiful natural scenery, it is seen as gateway to eco- and adventure activities, serving as a tourism hub. 

However, it has made headlines for various financial woes. It received an unqualified audit with findings for the 2022/23 financial year.

The Auditor-General has reported continued financial mismanagement in public institutions, with unauthorised, irregular, and fruitless and wasteful expenditure in the 2022/23 financial year totaling over R3.1 billion.

According to the findings, unauthorised expenditure reached R2.0 billion, rising from R1.4 billion the previous year. Irregular expenditure increased to R920.2 million.

Fruitless and wasteful expenditure climbed to R218.2 million, more than double the previous year’s figure.

The report also highlighted non-compliance with procurement and contract management legislation, including uncompetitive procurement processes, awards to close family members and state officials, and inadequate contract management.

Material misstatements or limitations in submitted financial statements were also identified.

The AG found the municipality takes an average of 245 days to pay creditors, well above the 30-day target. It also takes 158 days, on average, to collect debts owed, with 44% of outstanding debt deemed irrecoverable.

The municipality ended the year with more assets than liabilities and maintained a positive bank balance with no overdraft. However, it spent R116.8 million more than it earned, recording a deficit.

Additionally, over 10% of next year’s budget had already been used in prior years, raising concerns about future spending capacity.

The provincial executive council and local municipality said that it has adopted urgent remedial measures.

They said that this includes filling vacancies, developing audit action plans with monthly progress monitoring, strengthening internal controls to improve financial management, and implementing consequence management for policy transgressions.