Limpopo municipality accused of ignoring audit call for R24m forensic probe

The Fetakgomo Tubatse municipality in Limpopo has allegedly ignored an internal audit committee report calling for a forensic investigation into alleged irregular payments exceeding R24 million.

The detailed findings contained in the municipality’s second quarter audit committee report to council for the 2024-25 financial year, signed off on 28 January 2025.

Audit committee flags subcontractor payments

According to the report, the audit committee received allegations relating to appointments and payments of subcontractors and instructed the internal audit unit to review the regulatory process governing such payments.

The review was aimed at identifying instances of irregular expenditure and ensuring compliance with supply chain management legislation.

Among the more serious findings was R1.92 million paid despite the absence of written cession agreements, including payments linked to Duumba Wa Dipitja and Technicrete.

A further R9.18 million in payments could not be confirmed by the main contractor, Mafumu Consulting, across multiple subcontractors.

Irregular invoices and system discrepancies

The internal audit also identified a R919 304 payment processed but not captured on the municipality’s financial system and a R12.1 million payment made based on a pro-forma invoice rather than a valid tax invoice to ZML JV Aleng Actom Electrical.

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Additional red flags included a cession agreement signed by an official other than the accounting officer and multiple payments processed without verified tax compliance certificates or central supplier database verification.

The audit committee resolved that the municipality “should consider launching a full forensic investigation” into the appointments and payments of subcontractors and cessions and that the report be referred to the Municipal Public Accounts Committee for further scrutiny.

Political pressure mounts for forensic probe

The Bolsheviks Party of South Africa has since written to mayor Eddie Maila and the municipal manager, Mogaramedi Makgata, saying that more than a year later, no forensic investigation report had been tabled in the council.

In the correspondence, dated Monday, the party’s secretary-general Seaun Mogotji demanded the forensic investigation report be tabled in council, pointing out that inaction raised concerns about oversight, accountability and potential audit consequences.

“This demand is grounded in the constitution… the Municipal Finance Management Act (MFMA) and the principles of transparency, accountability and good governance applicable to all organs of state,” he said.

Collectively, the audit committee findings expose the municipality to financial loss, audit risk and potential legal consequences, he added.

Mogotji said they demand confirmation whether a forensic investigation was commissioned as recommended by the committee and, if so, a written update detailing the appointed forensic investigators, scope of work and expected completion date.

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He said that if the investigation had not yet been commissioned, it wants written reasons for the delay, a firm deadline for a report to be tabled in the council and confirmation that all irregular, fruitless and wasteful expenditure will face consequence management and recovery in line with the MFMA.

The party also wanted confirmation of whether the matter had been referred to relevant oversight or law enforcement authorities where required by law.