The Emfuleni Local Municipality is facing mounting public outrage after an investigation uncovered a procurement scandal that has cost taxpayers more than R16 million, deepening an already severe financial and operational crisis.
The probe, conducted by Tshangana & Associates Incorporated, revealed a disturbing pattern of irregular procurement, missing vehicles, defective machinery, and fraudulent confirmations linked to Maboela Forestry and Construction. Investigators say the municipality entered into unauthorized deals, bypassing proper supply chain procedures under the RT57-2019 national contract, resulting in payments for equipment that was faulty, partially delivered, or never delivered at all.
One of the first warning signs came in January 2022 when Emfuleni purchased three SANY SMG200-3 graders. The machines were intended to strengthen road maintenance, but investigators found the supplier was not authorized under the contract. Within weeks, the graders began experiencing mechanical failures. Municipal technicians were further frustrated when they discovered the operating manuals were written entirely in Mandarin, making troubleshooting nearly impossible.
Despite payments for extended warranties and service packages, no support was provided. By November 2022, the graders were still unregistered and lacked operating permits, yet they were in use. Within a year, major gear failures developed, and by June 2023 the machines had completely broken down. As of February 2025, only one grader had been repaired, while the other two remain idle. Investigators estimate the municipality lost more than R4.6 million due to inflated prices and unused service agreements.
Irregularities were also found in the purchase of eight Toyota Hilux bakkies between May and July 2022. Only three were reportedly delivered, with investigators able to verify only two. The remaining five vehicles were never delivered, despite payments exceeding R2.6 million. Emails showed Maboela attempted to source the bakkies from external dealerships—including NTT Hazyview, CFA Motors, and Toyota Midrand—causing further delays.
The most serious financial loss involved six UD Trucks, including cherry pickers and crew cabs, purchased in late 2022 for R8.7 million. The trucks were never delivered. Fraudulent invoices were signed by Fleet Manager Lerato Mpholo and Acting Assistant Fleet Manager Levy Hlalele, falsely confirming delivery. Fake registration documents, referred to as “birth certificates,” were also issued to create the illusion of ownership. Further investigation revealed duplicate engine numbers and registrations under other companies, including Key Spirit CC, Nissan Diesel SA, and Flitmove Pty Ltd.
The report identifies Lerato Mpholo as a central figure in bypassing procurement procedures and allegedly colluding with suppliers. Levy Hlalele admitted signing invoices under pressure, and Mpho Malema, director of Maboela, is implicated for issuing false documents. The report recommends criminal charges against those involved and urges the municipality to recover the R16,059,310 lost.
Speaking to Newsnote, Emfuleni Spokesperson Makhosonke Sangweni said Council had resolved to open a case against the individuals involved. “As a prima facie evidence exists, we will reserve our comment on the merits of the case and allow the justice system to provide accountability,” he said. He called on political parties to allow the municipality to act without interference and emphasized the commitment to Batho Pele principles and clean governance.
Sangweni questioned the media’s focus on documents not yet publicly released, stating that the municipality is finalizing disciplinary processes and will provide a full public statement at the conclusion of proceedings.
The scandal compounds Emfuleni’s financial woes, with billions owed to Eskom and Rand Water, and ongoing struggles to deliver basic services to residents.
