Middelburg – An eagerly awaited forensic investigation report that would have revealed evidence of damning allegations of corruption and misuse of funds meant for a power substation in Mhluzi has been dismissed by the ANC and the EFF in the Steve Tshwete Council.
Phase two of the report was finally presented on Tuesday, 26 August 2025. The Council said the report had several irregularities in the investigative process.
The report revealed that the municipality had overspent by R20 million, layering an extra cost on top of the original R158 million contract for the primary contractor.
The investigation uncovered that Steve Tshwete’s former Chief Financial Officer, among others, had breached Section 62 of the Municipal Finance Management Act (MFMA). The report also revealed that the primary contractor was appointed despite not meeting the necessary CIDB grading, thus flouting regulatory procurement standards.
In a dramatic turn of events, the EFF joined forces with the ANC to vehemently dismiss the report, while the DA, VF Plus, and Independent Candidate Reverend Thomas Mpye were for its adoption, leaving the MHRF in a position of neutrality.
The combined strength of the ANC’s 21 councillors and the EFF’s 9 significantly overshadowed the collective effort of the DA, which mustered only 17, alongside VF Plus with 3 and an Independent Candidate with 1.
EFF’s chief whip, Joseph Ngubeni, voiced his concerns regarding the integrity of Mgiba Consulting, the firm tasked with the investigation, claiming it fails to meet the stringent criteria expected in forensic reviews. The company, Ngubeni claims, is a civil construction firm and does not qualify to be a forensic investigation firm because it is not registered as one.
He lamented that former municipal manager Bheki Khenisa, former director electrical and engineering services Ntokozo Gubevu and former chief financial officer David Mogofe implicated in the findings, were not afforded the chance to present their viewpoints. “Mgiba’s evaluation was anything but fair; he chose not to interview everyone named in the report, yet he boldly brought it before the council,” he says.
“We reached a resolution in October 2023, anticipating that the report would be presented to the council by December 31. Yet, astonishingly, Mgiba wasn’t appointed until February 2024. According to section 29 of the MFMA, this situation represents a deviation, one with numerous technical complications.”
During a radio interview with Risefm, DA chief whip Palesa Mobango expressed deep disappointment and sorrow over the recent decision. “As members of the DA, we are truly heartbroken by what has transpired,” she said. “We’ve faced financial losses, and the institutions led by the ANC and EFF show little regard for the funds squandered. They seem indifferent to the vulnerabilities within our supply chain management systems, which could lead to further issues without any repercussions.”
