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Opposition parties bay for blood over municipality's R38 million shack call centre scandal

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The new call centre is located in the same yard as the old one in Vryburg. Sources claim no one knows what goes on in the call centre.
The new call centre is located in the same yard as the old one in Vryburg. Sources claim no one knows what goes on in the call centre.
Tebogo Letsie

POLITICS


Several opposition parties in North West are demanding answers and accountability about the construction of a prefabricated call centre, which cost the municipality a staggering R38 million.

Rise Mzansi and the DA have requested various law enforcement agencies to investigate Dr Ruth Segomotsi Mompati District Municipality. While Rise Mzansi wrote to the Office of the Public Protector to file an official complaint about the abuse of public funds, the DA approached the Special Investigating Unit (SIU).

This after City Press brought to light that the district municipality advertised and irregularly awarded the R38 million tender to two companies.

READ: Struggling North West municipality spent R38m on shack call centre

Rise Mzansi argued that the decision to construct the shanty call centre was a complete abuse of public funds and demanded that a full investigation be conducted on the alleged mismanagement of funds by government.

“Rise Mzansi in the North West has learnt with shock and disgust that the uncaring provincial government has spent an outrageous R38 million on a so-called call centre operating out of a prefabricated structure in the Mompati District municipality,” read the Rise Mzansi statement.

City Press also reported last week that a further R1.4 million was being spent on monthly operational costs at the municipality.

The newly launched party said the province suffered immensely under the leadership of the ANC.

Added Rise Mzansi in a statement:

We have all been witnesses to its collapse and their lack of providing economic opportunities for its residents. With registration on the weekend of 18 and 19 November 2023, South Africans must be reminded that it is in their power to take back our democracy for our communities and families.

The DA in the area said it wanted the SIU to investigate the entire process.

DA caucus leader at the Dr Ruth municipality Coenrad Herbst said their preliminary investigations indicated that the project was facilitated by municipal officials without a council resolution.

“The project is unfunded. A payment of R4.5 million was facilitated in February 2023,” he said.

Herbst added that officials were attempting to secure funding for this project out of budgets of preceding financial years, which have closed and been subjected to audit.

Herbst said: 

The information at our disposal indicates that this is a case of tender fraud and that the project is unlawful and warrants an investigation to ensure that implicated public office bearers and municipal officials are identified, charged and prosecuted and that all funds paid under this contract are recovered in full.

While political parties are calling for accountability, Aaron Motswana, the chairperson of the North West Provincial Legislature Portfolio Committee on Premier, Finance, Cooperative Governance, Human Settlements and Traditional Affairs, has expressed shock at the revelation.

Motswana said the committee was angered at the public money that was diverted from service delivery matters to creating a "fake call centre", which resulted in a duplication of duties with the long-instituted call centre within the municipality.

He called on the acting premier, Nono Maloyi, to take necessary steps to stop rampant corruption, fraud and looting at an industrial scale in the municipality.

“This shows thuggery, theft and fraud of the highest order that when thieves ran out of ideas on how to authorise the theft of taxpayers’ monies, the only logic was for them to create a shack and imaginary computers, handheld radios and vehicles to justify their greed,” said Motswana in a statement.

Shack
Inside the R38 million ‘shack’ call centre in Vryburg in North West.

He said what was shocking was that some councillors voted for this item in contravention of the Municipal Finance Management Act (MFMA) and Municipal Systems Act as amended.

Motswana added it was further disturbing that the municipal manager, Ronny Jonas, was attempting to defend the criminal act as it sought to tell of his character and credibility in protecting public funds in terms of his responsibilities as stated on the MFMA.

He said the committee would also involve law enforcement agencies, such as the SIU and the presidency, to declare a proclamation on both Dr Ruth Segomotsi Mompati and Ngaka Modiri Molema district municipalities.

The only sensible thing to do is to arrest those involved and other criminals, including councillors who voted on this irrational and unsound item and recover every cent paid for this non-existent imaginary call centre.

“What is also disheartening is the track record of the municipal manager on the labour court ruling against him when he was at Maquassi Hills municipality, including his irregular and fraudulent payments. In Mamusa and Tswaing local municipalities, he also has dubious track records. Therefore, it is not surprising that he would see any wrongdoing in paying for a non-existing shack call centre.

“We cannot be party to conducting such acts of thuggery and theft against the people of Dr Ruth municipality who do not have water and have poor sanitation due to a lack of services from the district municipality,” said Motswana. 


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