Investigation Reveals Major Irregularities in the Construction of Mankweng Sports Complex
Polokwane Executive Mayor Cllr John Mpe has revealed that forensic investigation initiated by the municipality into its processes uncovered significant irregularities.
Mpe was speaking during a post-council media briefing to provide an update on the forensic investigation at the New Peter Mokaba Stadium press theatre on Tuesday.
This investigation follows earlier inquiries in 2023, which highlighted significant lapses in procedure and compliance.
The focus of the investigations included the construction of the Mankweng Sports Complex, verification of employees and contractors, and scrutiny of overtime payments to full-time and EPWP employees.
Mpe said the probe into the Mankweng Sports Complex has uncovered substantial irregularities in procurement processes.
Initial audit findings suggest that contractors have been overpaid, with costs escalating far beyond the original budget of R38 million.
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Significant issues identified include incomplete construction, particularly in essential plumbing and electrical work, and the stadium’s deteriorating condition, which now necessitates extensive renovations.
Furthermore, the tendering process was compromised by unauthorized cost increases and procedural lapses.
Mpe said the allegations of fronting practices involving the main contractor and subcontractor have also come to light, alongside concerns regarding the construction of the complex on land not owned by the municipality.
“The project appeared to be expedited, with several essential steps overlooked. Key findings included incomplete plumbing and electrical work, a deteriorating stadium requiring extensive repairs, procurement irregularities involving the approval of bid specifications, excessive payments made to Ditlou Engineering Consultants, and allegations of fronting involving the main contractor, Phumi, and its subcontractor, Ebony and Ivory.”
“Additionally, the stadium was found to be constructed on land not owned by the municipality, and building plans were not approved. Completion certificates had been signed by consultants rather than the Municipal Manager,” said Mphe
Mpe stated that the municipality will prioritise the issue of land ownership for the stadium and will initiate disciplinary action against everyone involved.
“We have decided to institute disciplinary action against project managers and members of the Bid Evaluation Committee (BEC) and Bid Adjudication Committee (BAC) involved in the contract award. Further investigations into potential conflicts of interest regarding Ditlou Engineering Consultants,”
“The municipality was advised to review the contract awarded to Molooks, investigate land ownership where the complex is located, suspend payments to Ditlou Engineering until outstanding information is provided, and explore civil recovery of overpayments made,” Mpe said.
Further Irregularities of misconduct, discrepancies, violations of regulations within the municipality
The investigation revealed further Irregularities of misconduct, discrepancies and violations of regulations within the municipality
The investigation included The investigation into employee verification uncovered several discrepancies, including the existence of ghost employees, extended sick leave without documentation, and employees holding multiple positions.
“A lack of oversight from Human Resources and Legal Services allowed these issues to persist. We will registere a criminal case against a manager for using someone else’s personal information, verifying employee data with the Department of Home Affairs, investigating prolonged sick leave abuse, and taking disciplinary action against employees who violated leave policies,” said Mpe
Mpe said that the overtime payment investigation revealed excessive claims, lack of justification, and potential abuse, with over R128 million paid in overtime over 14 months.
He said 307 employees exceeded 60 hours of overtime monthly, violating the Basic Conditions of Employment Act (BCEA).
Some employees were found to have worked overtime while on leave, and allegations surfaced regarding contractors billing the municipality for materials sourced from municipal supplies.
“We have agreed as a council to inistute disciplinary actions against managers who allowed excessive overtime and extended EPWP contracts, conducting lifestyle audits of employees implicated in overtime irregularities, and investigating contractor abuses”
“These findings have prompted municipal authorities to take swift action, leading to the opening of criminal cases against implicated individuals and also institute desciplinary procesess,” said Mpe