Public Protector reveals how Bapo’s millions in mining royalties were squandered

The Public Protector has ordered North West premier Supra Mahumapelo to approach the Special Investigating Unit to probe more than R255-million in irregular payments related to the mining royalties missing from Bapo Ba Mogale’s D-Account.

Busisiwe Mkhwebane found that the largest amount‚ R115-million‚ was splurged on the construction of a palace for the clan’s late Chief Bob Mogale in Bapo village‚ near Brits‚ in the North West province.

This was well above the budgeted amount of R29.8million‚ with Mkhwebane saying there was gross misuse of funds by the North West department of Local Government and Traditional Affairs‚ with the amount exceeding the budget by R85-million and with no reasons advanced for the huge increase.

The report also reveals how a further R21.5-million was paid to Ndzalama interiors for the decoration of the palace during the construction and another R8.7-million paid to consultants ProjexConsult for the construction of the palace.

“The process of the procurement in the construction of the palace was done without going out on tender or calling for quotations‚” she said.

In the much-awaited report she released in Pretoria on Monday‚ Mkhwebane also detailed how:
– R20‚2-million was paid to Nkambule and Associates for the construction of trunk roads in Wonderkop and Greater Bapong areas;
– Payments of more than R8.1-million and R4.1-million paid to Abel Dlamini and Junius Moloto respectively during their tenures as administrators‚ as well as R719‚534 Moloto paid himself from the account.
– R3.7-million was paid to Madisa and Associates CC for marketing and communication services‚ which included drafting of strategies and plans‚ and design and layout of annual reports‚ but there was no proof of such services rendered.
– Payments of R5.1-million to Mosiamise Business Consulting for the review of mining activities and consultants but there was no proof of actual work being carried out.
– R36.3-million was paid to Matlapa Construction Consulting though it was evident that there was no value for money
– Payments of more than R4-million paid to Dire Accounting Practise CC but it failed to deliver on the implementation of the Enterprise Resource Planning System.
– Payments of more than R8-million to Thaba Consulting who were project managers for the construction of a multi-purpose centre‚ which was poorly constructed‚ and a further R13-million paid to Queens Building Construction CC who were also project managers for the same project. Another R5.2-million was paid to Thaba Consulting Engineers who were consultants for the construction of the centre
– More than R15-million paid to Kgatelopele Consulting Engineers for the construction of the Segwaelane Community Centre which was found to be poorly constructed.

Mkhwebane said the SIU should determine which funds could be recovered through a civil process.

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