By Lebone Rodah Mosima
The On The Move (OTM) Political Party on Tuesday said that the financial crisis in Limpopo’s Mogalakwena Local Municipality was quickly turning into an imminent financial collapse linked to ongoing reckless spending and illegal contracts.
OTM leader Victor Mokonyane said the municipality had racked up irregular payments amounting to about R425 million in the 2024/25 financial year.
He accused provincial authorities and law enforcement of failing to intervene, blaming Premier Dr Phophi Ramathuba and the province’s Cooperative Governance, Human Settlements and Traditional Affairs (CoGHSTA) department for the state of affairs.
The municipality has not publicly confirmed the R425 million figure, and no audited documentation supporting that specific amount was available at the time of publication.
While the party’s claims about the scale and nature of alleged irregular expenditure could not be independently verified, Mogalakwena has previously been the subject of official corruption and procurement investigations.
In September 2025, the Special Investigating Unit (SIU) said the Special Tribunal ordered a contractor, Easyway Tarmac Pave and Projects CC, to repay R68,866,908.88 plus interest, after the Tribunal declared its R167.9 million contract with Mogalakwena “unconstitutional, unlawful and invalid”.
President Cyril Ramaphosa in 2021 also signed Proclamation R180 of 2021 authorising the SIU to investigate allegations of corruption and maladministration at Mogalakwena and recover losses suffered by the municipality or the state.
In its own municipal reporting, Mogalakwena’s MFMA Section 52(d) report for the third quarter ended March 2025 stated that the municipality “entered into a payment arrangement with Eskom and Lepelle Northern Water”, reflecting creditor pressures and “cash constraints”.
Mokonyane alleged that “internal sources” and community members had told OTM the municipality still owed multiple entities, including Eskom and Lepelle Northern Water, and claimed residents were being overcharged on electricity accounts.
He also alleged the municipality owed the provincial transport department.
“OTM Political Party was visited by community members yesterday, 02 February 2026, who personally confirmed with the Department of Transport that the municipality is indeed owing them over R17 million, hence the interruption of licensing services in the municipality,” Mokonyane said.
He said the municipality’s billing and administration had deteriorated, including claims it could not print account statements or receipts.
Regarding the alleged illegal contracts, he said these alleged payments “were prioritised to illegally appointed contractors because of their proximity to certain senior officials and politicians, with no regard for critical services”.
He blamed provincial oversight structures, saying: “The blame for the financial collapse of the Mogalakwena Local Municipality must be placed at the door of the Office of the Premier and Limpopo CoGHSAT, who have turned a blind eye to the situation, despite numerous warnings and calls for intervention by the OTM Political Party,” he said.
“Law enforcement agencies have also dragged their feet in investigating perpetrators, despite clear violations of the law.”
Mokonyane said the party considered political interventions under section 139(1)(b) to have been ineffective, and urged residents to monitor their municipal accounts for possible overbilling.
He also called on the Municipal Public Accounts Committee to account for how it is holding officials accountable for the alleged R425 million, and demanded transparency on supplier debt and unauthorised expenditure in the first six months of the 2025/26 financial year.
“It is vital for residents of Mogalakwena Local Municipality to hold municipal officials accountable for the financial mismanagement of public resources,” he said.
“The Prevention and Combating of Corrupt Activities Act (PRECCA), 2004, criminalises corrupt activities and encourages the involvement of civil society and community-based organisations in preventing corruption.”
Mokonyane said OTM was planning a community-led protest march to the Mogalakwena municipal offices and would share details later.
“The rot that has plagued Mogalakwena Local Municipality must come to a stop,” he said.
Mogalakwena Local Municipality and the Limpopo provincial government did not respond to questions by the time of publication.
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