municipal mismanagement
China’s Mpumalanga power grab
Dubious procurement, inflated costs, wasted millions and rumours of corruption — amaBhungane lays bare the reality of how a project meant to overhaul Mashishing’s electrical infrastructure turned bad
If you’re looking for a masterclass in mismanagement, Mpumalanga’s Thaba Chweu municipality offers just that. Ballooning costs flowing from dubious contracts for an electrical substation could be the financial death blow for the municipality’s main town, Mashishing (Lydenburg). The small municipality is already one of the worst-performing in a province full of dysfunctional local councils. But what started as a R118m project to build a 132kV substation in 2012 has spiralled to well over three times that cost. Six years later, and with a price tag of about R400m, construction of the Duma substation has ground to a halt. Earlier this year, not long after the first bricks were laid, the municipality ordered the contractor, a state-owned Chinese company, to stop construction. This came after criticism from opposition councillors, activists and residents that there was no need to sink such a vast sum into a substation in the first place — and that the municipality had signed away most of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.