Two payments amounting to R4.9m were made a few seconds apart by a Gauteng municipality to a company for rehabilitating a deadly sinkhole outside a primary school — despite no work having been done on it.
The Merafong municipality in the mining town of Carletonville paid R2.4m and R2.5m to LSM Projects, a Limpopo-based company, on January 30 at 8.36am, signed off by municipal manager Dumisani Mabuza and CFO Palesa Makhubela.
The Sunday Times visited the school, Hlanganani Primary in Khutsong's Ext 3, and saw a sinkhole about 12m wide and 10m deep, just 60m from the school entrance.
A case of fraud laid with the Carletonville police in August is being investigated. Gauteng police spokesperson Mavela Masondo said the case had been transferred to the Hawks.
Mabuza declined to comment, saying the public protector's office was investigating allegations that the tender was never advertised and that LSM Projects was unlawfully appointed.
“Unfortunately we will not respond to the questions owing to a public protector investigation on the matter,” Mabuza said.
Spokesperson for the Public Protector, Khulu Phasiwe, confirmed the investigation, saying it was at a preliminary stage.
Khutsong has been rocked by multiple sinkholes, which have swallowed more than 40 houses and left streets cordoned off.
Last year, the Gauteng department of co-operative governance & traditional affairs (Cogta) gave R5m to Merafong municipality specifically to rehabilitate the sinkhole outside Hlanganani Primary.
Aggrieved local business people told the Sunday Times they only found out that a job to rehabilitate the sinkhole had been given to a company and that R5m had been paid after a report on the “work” was presented in council recently.
The Sunday Times has seen two invoices, dated January 23 and 24, submitted by LSM Projects to the municipality for work done to rehabilitate the sinkhole.
They included R359,800 for “inception”, R1.7m for “concept and viability”, R2.1m for design development, R7,000 for printing, copying and binding and a further R7,700 for travelling expenses.
Sombanyana Nkuna, who is listed as one of the two directors of the company, told the Sunday Times he could not comment as the matter was under investigation.
“We will only be able to respond once the investigation is complete,” he said.
The other listed director, Setumo Mohale, said he was not aware that he was listed as a director and had only ever worked on one project with LSM Projects, which is based in Polokwane.
Mohale said he was unaware of the sinkhole project and payments.
Community activist Happy Lefakane said the tender had never been advertised and that it was a big surprise to the community that a company was paid for a job not done.
“We believe this was just a money-chowing scheme,” he said.
He said the community was being failed by the municipality as the report was presented in council but no councillors had raised an issue with it.
“I am very angry because nobody seems to care about how public funds are being misused and on this one we have hard evidence because nobody ever came to rehabilitate this sinkhole,” Lefakane said.
Mmathapelo Mapelo, a parent of a seven-year old pupil, said although they lived close to the school she fetched her child every day, mostly due to the danger of the sinkhole.
“Children are very naughty, and when nobody watches over them, they come to this sinkhole and anything bad can happen,” she said.
Mapelo said she had on several occasions stopped young children going near the pit.
Another parent, Neo Molapisi, said: “What is happening here is very sad and an incident will happen one day as these children, especially the younger ones who are not picked up by their parents, like playing near this sinkhole.”
In a letter from Gauteng Cogta, dated January 27 2023, head of department Darion Barclay made a commitment to make R5m available for the rehabilitation of the sinkhole.
“Through reprioritization of funds, the department will allocate R5m to the municipality, to contribute towards the rehabilitation of the sinkhole at Hlanganani Primary School...” Barclay said in the letter addressed to Mabuza.
Gauteng Cogta MEC Jacob Mamabolo's spokesperson Theo Nkonki said the department recently received a report from Merafong municipality which was “currently being analysed by the department based on the expected deliverables”.
“A sinkhole steering committee has been established to track and monitor progress on the interventions,” said Nkonki.
He said the department would make a “determination upon concluding the analysis of the report submitted by the municipality”.
The sinkholes have also damaged internal water supply and sewer pipes to parts of Khutsong township.
Barclay's letter said R3.5m would be for the rehabilitation of the sinkhole while R1.5m would cover “additional work” for a water and sewer project in Khutsong.
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