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The scandal surrounding the erroneous deposit of R134 million into the Bojanala Platinum District Municipality has taken a new and dramatic turn. Insider sources close to the Municipality have revealed that law enforcement agencies are closing in on high-profile arrests in connection with this colossal financial blunder.
The revelation comes following the submission of a comprehensive forensic report to the Provincial Treasury by Nexia SAB&T. The report meticulously uncovers key figures and service providers involved in the misallocation of these funds. An insider leak suggests that the report seen by Naledi News, contains a trove of crucial evidence, including invoices, purchase order numbers, and the names of companies that benefited from the staggering R134 million.
The report highlights that a total of R84 million from the misallocated funds was channeled to five different companies. One of these companies is owned by Moses Malesa, who was recently arrested alongside former Bojanala municipal manager Patrick Shikwane.
It is worth noting that since the erroneous transfer in 2019, the R134 million has been successfully returned to its rightful destination, the Rustenburg Local Municipality. This return of funds was executed in four separate tranches, totaling R50 million, R25 million, R59 million, and finally, R97 million.
The saga began when the North West Provincial Treasury, acting on behalf of the North West Provincial Government, initiated an independent investigation into the inexplicable R134 million deposit made by the North West Department of Local Government and Human Settlements on 4 March 2019. This massive sum was erroneously placed in the Bojanala Platinum District Municipality’s account, instead of the intended recipient, the Rustenburg Local Municipality.
The primary objective of the forensic investigation was to scrutinize the involvement and roles played by officials from both the Department of Local Government and Human Settlements (DLG & HS) and the Bojanala Platinum District Municipality (BPDM) in this high-value transaction. The funds were initially allocated as part of a Human Settlements Development Grant intended for Rustenburg Local Municipality.
The investigation uncovered a series of communication exchanges preceding the erroneous transfer. In a letter dated 17 January 2019, the Head of Department at the Department of Local Government and Human Settlements requested the Director General of the National Department of Human Settlements to initiate the transfer. In response, on 5 February 2019, the Director General stipulated that the transfer should strictly adhere to applicable laws and regulations, with specific terms and conditions.
Despite these clear instructions, the payment was inexplicably processed and erroneously transferred to the Bojanala Platinum District Municipality on 4 March 2019, forming a part of the R134,146,685 transfer.
The Chief Financial Officer of the Department promptly notified Bojanala Municipality of the erroneous transfer on 1 April 2019, urgently requesting the funds be rerouted to the Rustenburg Municipality as a matter of utmost importance. Subsequently, the Municipal Manager of BPDM proposed, in a letter dated 21 May 2019, that the funds be transferred in three installments. The Head of Department: Local Government and Human Settlements responded on 30 May 2019, insisting that the entire amount should be transferred at once and not in batches.
In a significant twist, the report hints at potential deception during interviews with the former Municipal Manager and CFO. It raises suspicions that the CFO might have been aware of the erroneous deposit destined for the Bojanala Platinum District Municipality.
As the investigation continues to unravel the intricate details of this financial scandal, the anticipation of high-profile arrests and legal proceedings intensifies. The people of the North West Province anxiously await justice and accountability for this monumental financial misstep.
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