Polokwane's R500 Million Crisis: Unraveling a Web of Corruption and Mismanagement

In a staggering revelation of mismanagement, corruption, and fraudulent activities, Polokwane Municipality has lost nearly R500 million over the past 16 years. A forensic investigation by Bowman-Gilfillan has uncovered the extent of financial abuse by municipal officials and senior managers, revealing a series of irregularities that have cost Polokwane taxpayers hundreds of millions of rands.

Executive Mayor of the City of Polokwane, Makoro John Mpe.

The investigation, prompted by red flags from the Auditor General and the municipality’s internal audit committee, revealed pervasive issues—ranging from ghost employees to fraudulent overtime claims. Speaking at a press briefing on October 22, Polokwane Mayor John Mpe outlined the investigation’s findings, underscoring the impact of systemic corruption on municipal finances and services. “The investigations focused on employee and contractor verification, ghost workers, questionable overtimes, and sick leave,” he said, highlighting widespread abuse across various departments.

The Mankweng Stadium Debacle

Photo of Mankweng Stadium

One of the most troubling examples involves the construction of the Mankweng Stadium, where the municipality lost over R40 million due to alleged fraudulent activity. Initially budgeted at R38 million, costs for the project have ballooned to over R126 million, with construction still incomplete. The project has also faced several complications, such as beginning without approved building plans and inadequate safety measures, leaving the stadium in a deteriorated state.

Engineering Consultants and called for accountability measures against the project managers. “The city has started measures to recoup some of the lost funds, including filing civil claims against involved contractors,” Mayor Mpe stated, acknowledging the municipality’s responsibility to protect taxpayer funds.

A particularly alarming discovery was that the municipality paid out over R128 million in questionable overtime claims over 14 months. Shockingly, 307 employees claimed to have worked over 60 hours of overtime in one month, violating South Africa’s Basic Conditions of Employment Act. With some employees claiming overtime while on leave, and one had even been on paid leave for more than five years. Forty-four employees, including senior managers, are now facing disciplinary hearings.

The investigation further exposed a “ghost worker” scheme where fake employees were created to siphon off salaries. This, along with cases of workers using the credentials of deceased employees, has prompted criminal cases against implicated individuals. The municipality has already dismissed some of those involved and is pushing for criminal proceedings.

Procurement Failures and ‘Missing’ Buses

The report also revealed that the municipality lost R15 million on ten buses that were never delivered. This scandal involves two former senior managers and a current senior official, all facing charges of alleged corruption in the procurement of city buses for Leeto la Polokwane.

In a statement, Mayor Mpe emphasized the municipality’s efforts to take corrective action: “We have opened criminal cases and initiated disciplinary actions. Those responsible will face the law, and we will pursue civil claims to recover lost funds.” The city is also considering measures to strengthen oversight processes to prevent future abuses.

ANC spokesperson Adolph Rapetswa praised the mayor for addressing corruption decisively. Meanwhile, opposition parties decried the findings, describing them as a sign of mismanagement and unchecked corruption. VF Plus Polokwane councillor Susan Clarke and DA caucus leader Jacques Joubert both pointed to failed internal processes and poor oversight as contributors to the municipality’s financial woes. Joubert called for implementing a shift system to curb overtime abuse, which he believes would cut costs and create jobs.

In response to these findings, Polokwane Municipality has committed to improving transparency and enforcing stricter management practices. However, with years of systematic corruption and hundreds of millions lost, rebuilding public trust may take time.

This ongoing investigation serves as a reminder of the significant impact that fraud and corruption can have on local governance and the livelihoods of those who depend on municipal services.