Dean Macpherson Pulls Plug on EPWP Funds in Matjhabeng Over Corruption Allegations

Former councillors raking in R31,000 while the poor get R1,500: Why the EPWP lifeline is now under fire in the Free State

When the Expanded Public Works Programme (EPWP) was launched back in 2004, it was pitched as a bold intervention to tackle unemployment in South Africa. Two decades later, it was meant to still be doing exactly that, offering short-term, skills-based work to vulnerable groups, especially young people. But in Matjhabeng, Free State, that vision has seemingly gone off the rails.

This week, Public Works Minister Dean Macpherson took the dramatic step of suspending all EPWP fund transfers to the Matjhabeng Local Municipality after damning allegations emerged that the payroll was being exploited to enrich political figures at the expense of the people it was meant to uplift.

What’s Going On in Matjhabeng?

Reports from insiders suggest that former councillors and current political office-bearers are allegedly receiving monthly EPWP stipends exceeding R31,000. That’s more than ten times the standard stipend. Meanwhile, some legitimate workers in the programme are reportedly scraping by on as little as R1,500.

If true, the disparity isn’t just unethical, it’s illegal under EPWP rules, which limit job placements to short-term, skills-based work with a 24-month cap in a five-year cycle. And it completely undermines the programme’s intent to fight joblessness, particularly among youth, women and people with disabilities.

“This is supposed to be a lifeline,” Macpherson said bluntly. “Not a vehicle for political patronage.”

Social Media Reaction: ‘This Is Why Our Youth Don’t Trust the System’

The public outcry on social media has been swift and scathing. On X (formerly Twitter), South Africans were quick to voice their anger:

“R31K for an ex-councillor? While our kids in townships hustle for piece jobs? This is why our youth don’t trust the system.” — @Thabiso_Speaks

“EPWP was never perfect, but it kept people afloat. Now it’s just another gravy train.” — @BoityForChange

Others praised Macpherson’s swift intervention but warned that real accountability must follow.

A Pattern of Abuse and a Push for Reform

Macpherson’s decision isn’t just about one municipality. It forms part of a bigger campaign to clean house. The Minister has been travelling the country on what he calls an EPWP Listening Tour, collecting stories from workers, municipalities and civil society about how the programme is being used and misused.

“What we’ve heard is troubling,” he admitted. “Stories like the one in Matjhabeng aren’t isolated. That’s why we must reform the EPWP, not just to stop abuse, but to protect the thousands who depend on it for hope and dignity.”

And this isn’t his first strong move. Earlier this month, Macpherson promised to restore trust in his department by investigating failing state projects, including the Telkom Towers redevelopment and the controversial PSA Oxygen Plant, both under the watch of the Independent Development Trust (IDT).

The Bigger Picture: 20 Years of EPWP, Now at a Crossroads

Launched in 2004, the EPWP was a hallmark programme in the fight against South Africa’s stubborn unemployment crisis. It provided hundreds of thousands with work opportunities in road maintenance, community safety, sanitation, and more.

But over time, political interference and weak oversight have chipped away at its credibility. The Matjhabeng scandal feels like a tipping point, both a symptom and a wake-up call.

For young job seekers in Welkom, Odendaalsrus and Virginia, the suspension of EPWP funds is a hard blow. But many say it’s better to fix a broken system than continue propping up one that rewards the politically connected.

As one resident put it, “At least now someone’s paying attention. Maybe things will finally change.”

Dean Macpherson’s suspension of EPWP funds in Matjhabeng may have disrupted short-term job placements, but it’s a necessary step to ensure the programme isn’t hijacked by corruption. Whether this marks the beginning of meaningful reform or just another empty promise will depend on what happens after the investigations wrap up. South Africans, especially the youth are watching.

{Source: The Citizen}

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