Public Protector Exposes Irregularities in R23m Laserin Stadium Project, Slams Eastern Cape MEC for Inaction

20-06-2025
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Central News
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Public Protector Kholeka Galeka has released a damning report on the construction of the Laserin Stadium in the Eastern Cape, revealing serious procurement irregularities and poor quality work despite the project costing nearly R23 million. The report criticizes Eastern Cape COGTA MEC Zolile Williams for failing to act on the issues, with action only being taken after the Public Protector’s intervention. The investigation, sparked by public outrage over the stadium’s substandard state, uncovered a trail of governance failures, budget overruns, and suspicious payments, pointing to possible corruption within the Inkum Kijijimi municipality. Built near Kmani in 2019, the stadium was meant to uplift the community but remains non-functional, leaving residents without a promised sports facility.

A Stadium Mired in Controversy

The Laserin Stadium, completed in 2019 near Kmani in the Eastern Cape, was envisioned as a cornerstone for sports and youth development in the Inkum Kijijimi municipality. However, it quickly became a symbol of mismanagement. Community groups and residents raised alarms about its exorbitant cost—nearly R23 million—and its shocking state: a patchy, dry field, tiny metal stands, and no working toilets or electricity. The public outcry grew louder as images of the dilapidated facility spread online, prompting the Public Protector’s office to step in.

In her June 18, 2025 report, Advocate Kholeka Galeka confirmed the stadium’s dire condition after two site inspections. “It’s very clear that that stadium is non-functional,” she said in an interview. “There can’t be value for money if it can’t even be of use to the people of that area.” The investigation exposed a litany of problems, from procurement irregularities to shoddy construction, leaving taxpayers with little to show for their money.

Procurement Chaos and Budget Blowouts

The trouble began early. The Eastern Cape Department of Cooperative Governance and Traditional Affairs (COGTA) approved the tender at R18.7 million, but it was advertised at R22.7 million—a R4 million overrun with no proper authorization. The Public Protector found this breach violated the municipality’s own supply chain management policy. The tender process was further flawed: it had conflicting closing dates, was advertised for just 14 days instead of the required 30, and wasn’t published on three public platforms as mandated. The municipality claimed an “emergency” justified the rush, but Galeka dismissed this excuse, stating it didn’t align with policy definitions.

The contract went to Thalami Civils, a Pretoria-based firm, despite it not being the highest-scoring bidder. Under the Municipal Finance Management Act (MFMA), the municipality should have sought council approval for the extra funding, but it didn’t. This reckless planning set the stage for what Galeka called “maladministration from the onset.”

A Stadium That Falls Apart

The stadium’s specifications promised a grassed athletic track, soccer and rugby field, netball, tennis, and volleyball courts, and proper grandstands. But the reality was far different. The field was uneven and unusable, key facilities were missing or incomplete, and the site lacked electricity. Worse, municipal officials signed off on the project’s completion despite knowing it didn’t meet standards. “The project manager should have ensured the work was up to scratch before approving it,” Galeka noted.

Adding to the mess, the municipality skipped a required environmental impact assessment before breaking ground, causing delays and ballooning costs. Treasury, responsible for releasing funds, failed to flag the budget overrun or the environmental non-compliance—lapses the Public Protector said should have triggered alarm bells.

Suspicious Payments Spark Corruption Fears

The investigation uncovered troubling financial dealings by Thalami Civils. After receiving payment, the company’s bank statements showed no transactions linked to construction—no payments for materials or workers. Instead, funds flowed into trust accounts and other beneficiaries almost immediately. “There was no such transaction [related to construction],” Galeka explained. “This raised the suspicion that there’s more than meets the eye.”

Unable to probe private bank accounts, the Public Protector referred the matter to the Hawks for a criminal investigation. “Where we find a suspicion, we must pass it to law enforcement,” she said. The Hawks are now tasked with tracing the money and determining if officials or others pocketed public funds.

MEC Zolile Williams’ Inaction Exposed

Eastern Cape COGTA MEC Zolile Williams came under fire for sitting on his hands. An interim forensic report had already flagged the irregularities, but Williams took no action. “He knew of them even with the interim report,” Galeka said. “He shouldn’t have waited for the final report to ensure that some action is taken.” Even after receiving the full report, he didn’t table it in the legislature—a delay that persisted until the Public Protector’s probe forced the issue into the open in 2024. This inaction, the report argues, reflects a broader failure of executive accountability when public money is squandered.

Remedial Actions: Rebuilding Trust and the Stadium

The Public Protector laid out clear steps to fix the mess:

Reconstruction: The stadium must be rebuilt to meet standards and serve its intended purpose.

Declare Wasteful Expenditure: The municipality must account for misused funds by officially declaring the irregular spending.

Disciplinary Action: Officials behind the mismanagement face consequence management.

Hawks Probe: The suspicious payments warrant a full criminal investigation.

Galeka stressed the need to establish the value of work actually done—a task for both the municipality and the Hawks—to quantify the waste. “They need to determine how much was wasted in this regard,” she said. The goal is not just accountability but ensuring the community gets the facility it deserves.