Mangaung Municipality Wastes R5.5 Million on Failed Projects, Residents Left with Nothing

The Mangaung Metropolitan Municipality, which includes Bloemfontein, has come under fire after it was revealed that R5.5 million was spent on construction projects with no tangible benefits to the community. The wasteful expenditure, detailed in the municipality’s consolidated annual report for the 2023/2024 financial year, highlights significant mismanagement and a lack of accountability.

Thaba Nchu Community Centre Project

One of the major instances of wasteful expenditure involved the construction of the Thaba Nchu Community Centre. The project, which began in March 2020, was plagued by mismanagement from the start.

The municipality appointed service providers in March 2020 but only appointed a contractor in June 2022. This misalignment led to delays, forcing the municipality to extend the service providers’ appointments twice—first to March 2023 and then to July 2023. During these extensions, the contractor was unable to access professional services, causing further delays.

The contractor submitted two claims for the delays, totalling R3.6 million, which the municipality paid in May 2023 and June 2024. However, this payment provided no benefit to the municipality or the public and was classified as wasteful expenditure.

Botshabelo Fire Station Project

A similar situation occurred with the construction of a fire station in Botshabelo. Service providers were appointed in January 2020, but the contractor was only appointed two years later, in June 2022.

The municipality extended the service providers’ appointments twice, leading to periods when no services were provided. The contractor submitted claims for delays totalling R1.9 million, which the municipality paid. Like the Thaba Nchu project, this expenditure was wasteful and provided no value to the community.

Lack of Accountability

The annual report revealed that the accounting officer was notified of the financial irregularities on 5 June 2024. However, no disciplinary action was taken against the responsible parties, and no steps were taken to recover the lost funds or investigate potential fraud.

The report also highlighted that the accounting officer failed to take appropriate action to resolve the issues, leaving the municipality and its residents to bear the cost of the mismanagement.

Impact on Residents

The R5.5 million wasted on these projects could have been used to address critical service delivery issues in Mangaung. Instead, residents are left with incomplete community centres and fire stations, while the municipality faces growing criticism for its lack of accountability and transparency.

The revelations have sparked outrage among residents and stakeholders, who are calling for immediate action to address the mismanagement and hold those responsible accountable. Transparency and accountability are essential to restoring public trust and ensuring that municipal funds are used effectively to benefit the community.

As the Mangaung Metropolitan Municipality grapples with the fallout from these revelations, the case serves as a stark reminder of the importance of proper project management and oversight in public spending.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com