By Akani Nkuna
Public Works and Infrastructure (DPWI) Minister Dean Macpherson has cleared the Matjhabeng Local Municipality in the Free State of allegations of abusing public funds, following a three-week investigation into claims of embezzlement.
Releasing the findings on Sunday, Macpherson said the probe confirmed that grant allocations for both the 2023/24 and 2024/25 financial years were spent on approved projects, creating thousands of work opportunities for local residents.
As a result, he has directed that withheld Expanded Public Works Programme (EPWP) funds be released so that projects can continue.
He stressed, however, that the municipality must account for its decision to establish an EPWP Support Unit.
The investigation followed a City Press report in July which alleged that EPWP funds were being used to pay inflated salaries—exceeding R31,000 a month—to former councillors and current political office bearers, more than ten times the average EPWP stipend.
Macpherson subsequently suspended EPWP transfers to the municipality pending the outcome of the inquiry.
“When I first learned of the allegations, I moved speedily to ensure that public funds are protected and that an investigation be conducted as soon as possible. I therefore commend departmental officials for conducting the investigation within three weeks, which found that all EPWP funds transferred to Matjhabeng are accounted for, and that grant money was used strictly for its intended purpose – creating work opportunities for unemployed South Africans,” he said.
The probe found that while salaries within the EPWP Support Unit were indeed significantly higher than the EPWP stipend, the unit was created at the discretion of the Executive Mayor, funded through the municipal budget, and thus fell within the legal framework.
“While these officials’ salaries are significantly higher than the EPWP stipend, their contracts are municipal appointments linked to the Executive Mayor’s term and fall outside of the EPWP framework. While it may be considered unnecessary for such a unit, that is within the political decision-making realm of the mayor and not the minister to determine,” Macpherson reiterated.
Although sceptical about the necessity of the Support Unit—given the high costs to the municipality—Macpherson emphasised that its establishment did not involve national EPWP funds.
He ordered the release of the funds that had been withheld pending the investigation, to ensure that work opportunities continue without delay.
He said the swift conclusion of the investigation should reinforce transparency and accountability in the public sector, while deterring corruption.
“Where allegations arise, we will investigate these speedily and provide feedback to the public as we have done in this case. This will ensure that a culture of transparency is built within the programme to keep officials accountable for how funds are distributed,” Macpherson said.
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