Only R23 Million Spent, Not R214 Million: Free State Roads Department Refutes R709 Road Project Fraud Claims by City Press, Insists Road Work is Advancing

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29-07-2025
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Central News
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In a fiery statement released on Monday, 28 July 2025, the Free State Department of Community Safety, Roads and Transport has strongly denied allegations of fraud and abandonment in the R709 road rehabilitation project between Tweespruit and Excelsior. The department dismissed a recent City Press report as “slanderous fiction” and “political theatre,” insisting that only R23,743,617.24 has been paid to the contractor so far, far less than the R214 million total contract value. Officials stressed that the 22-month project remains on track, with visible progress including four kilometres of asphalt overlay, 1.2 kilometres sealed, ten kilometres strengthened with a G5 subbase, and 28,000 cubic metres of seal stone ready for use.

This response comes amid growing scrutiny of the project, which has drawn in claims of corruption linking Free State Premier Maqueen Letsoha-Mathae and her family to improper benefits. The Hawks are investigating after a former contractor raised accusations of bribes in the form of luxury vehicles and cash payments tied to tender awards. The department’s rebuttal aims to set the record straight, highlighting what it calls deliberate distortions by City Press, a publication that recently shifted to a digital-only format after ending its print edition in December 2024 due to declining sales and changing reader habits.

Background to the Controversy: City Press Report and Corruption Allegations

The saga began with a City Press article portraying the R709 as an “abandoned dust bowl,” claiming R269 million in public funds had vanished with little to show for it. The report detailed how Tau Pele Construction, awarded the R214 million contract to upgrade the 44-kilometre stretch, allegedly walked away amid graft scandals. It suggested the road, meant to improve safety and connectivity for local communities, had turned into a hazardous, unfinished mess, with tar removed and dust causing problems for drivers and residents.

At the heart of the claims are accusations from Patrick Phuti, CEO of New Beginnings Construction, a previous contractor whose deal was terminated for poor performance. Phuti alleged that he facilitated R4.5 million in payments to the Premier and her family, including R2 million from Tau Pele used to fund transport for delegates at an ANC Women’s League (ANCWL) conference. He claimed these funds bought influence, resulting in luxury cars like a BMW 7 Series and a Mercedes-Benz V300d for the Premier and her husband. Phuti described himself as a “flashy tenderpreneur” once involved with “Madwala” projects, now seeking revenge after his firm’s failures led to contract losses.

These insinuations have sparked political backlash. The Democratic Alliance (DA) has called for a Hawks probe into the Premier’s alleged involvement, labelling it a symptom of deeper governance issues in the Free State. ActionSA announced plans to file criminal charges, arguing the scandal erodes public trust and diverts resources from essential services. The Economic Freedom Fighters (EFF) echoed these concerns, saying the case against the Premier and Mangaung Metro speaker is “just the beginning” of exposing patronage networks. Critics point to a pattern where tenders become tools for personal gain, with funds meant for roads ending up in private pockets.

The R709 project, valued at R269 million overall including preliminary costs, was intended to rehabilitate a vital link in the province’s transport network. Bids saw Tau Pele and Hilary Incoline JV both quoting R214 million, but New Beginnings’ earlier involvement ended in termination due to delays and substandard work. Phuti’s WhatsApp messages, leaked in reports, accused the Premier’s husband of demanding cars in exchange for tenders, painting a picture of a system rife with kickbacks. The Hawks’ investigation, ongoing since October 2024, examines these transactions for money laundering, fraud, and corruption under the Prevention and Combating of Corrupt Activities Act.

Department’s Detailed Refutation: Facts Versus Fiction

The department’s statement rejected these narratives outright, calling them “libelous gossip” from a “bitter failure of a contractor” whose track record includes collapsed projects and incompetence. “The so-called ‘abandoned dust bowl’ they describe is in truth a living worksite where progress is evident and measurable,” the statement read. Officials explained that removing tar was a standard preparation step for a stronger surface, and dust is a temporary byproduct of phased engineering, not evidence of decay.

Emphasising transparency, the department clarified that payments to Tau Pele total only R23.7 million, aligned with completed phases.

The full contract spans 22 months, with milestones like asphalt laying and subbase strengthening on schedule. “Contrary to the article that R214 million has been paid to the contractor, only R23,743,617.24 has been lawfully expended, a mere fraction of the R214 million contract, whose 22-month programme is on track,” it stated. They dismissed talk of R269 million “vanishing into thin air” as “hilarious” and “the intellectual equivalent of mud-slinging in a cathedral.”

On the corruption angle, the department defended the Premier, saying insinuations of trading contracts for luxury cars and campaign funds are baseless smears. “The grotesque insinuations that the Honourable Premier and her family traded public contracts for luxury cars and campaign funds are not journalism; they are libelous gossip,” the statement asserted. It accused Phuti of choosing “revenge through poison-pen letters” after his firm’s dismissal, and criticised City Press for platforming him despite his credibility issues.

The department highlighted community benefits, including job rotations for local sons and daughters through transparent opportunities.

“The people of the Free State are not fooled. They see the asphalt being laid, they see their sons and daughters rotating through transparent community job opportunities, and they see a government committed to completing this project with diligence and honour,” it added.