DA Pushes for Forensic Audit into Musina-Makhado Special Economic Zone
- Designated in 2017, the MMSEZ was planned as Limpopo’s flagship industrial development project, aiming to attract R150 billion in investment and create over 20,000 jobs.
- The SEZ is divided into two nodes: the Musina node for light industries and logistics, and the Makhado node focused on heavy industries including coal-based steel and energy production.
- Despite awarding contracts worth R579 million and spending R155 million, the project has seen minimal progress, with only partial completion of internal roads, which have since been halted due to legal disputes and regulatory non-compliance.
MUSINA — The Democratic Alliance (DA) in Limpopo has demanded an independent forensic audit into the Musina-Makhado Special Economic Zone (MMSEZ).
The party says it has submitted a formal request to the Chairperson of the Portfolio Committee on Economic Development, Environment and Tourism, calling for a full investigation into all operational and infrastructure expenditure under the Limpopo Economic Development Agency (LEDA) and MMSEZ (Pty) Ltd.
DA Limpopo Provincial Spokesperson on Economic Development, Environment, and Tourism, Jacques Smalle said the audit must include all tenders and contracts awarded, including their rationale, implementation, and management.
“Our call follows an oversight visit to the MMSEZ sites by the Portfolio Committee on Public Administration and a report submitted by MMSEZ Board Chairperson Dr NF Mphephu to the LEDET Committee.
Although presented as a progress report, it instead highlights a pattern of repeated failure, shifting timelines, and institutional incapacity,” said Jacques Smalle,
Smalle said despite R155 million having been spent on the Musina-Makhado Special Economic Zone, tangible progress remains minimal.
According to the MMSEZ Board’s own submission, R579 million in contracts have been awarded, and R155 million spent — yet only one project (internal roads) reached partial implementation, and that too was halted due to litigation and non-compliance with SEZ standards.
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The internal roads were built above ground level without the necessary development rights, requiring costly ramps and stormwater corrections, and breaching planning laws.
“There is also a pattern of repeated appointments of the same service providers. Tshiamiso Trading, which abandoned a previous site under dispute, was reappointed for sewer works. Naledzi Environmental Consultants, DBI, Penyo, and Mamadi & Company, who appear across multiple contracts, raising concerns over potential manipulation of procurement processes,” said Smalle.
Multiple contractors have abandoned sites, citing non-payment, and have lodged legal claims against MMSEZ.
SLM Consulting Engineers were paid R21.7 million, despite their accepted offer being R19.7 million, suggesting a possible breach of PFMA limits on contract variation.
“In several instances, service level agreements for professional service providers differ materially and above permissible adjustments from original tender submissions,” said Smalle.