Limpopo’s R15 million shacks scandal case heads for trial

Six people accused of corruption in the R15.3m Talana shacks scandal appeared in the Polokwane Specialised Commercial Crimes Court, the National Prosecuting Authority (NPA) said on Wednesday.

NPA spokesperson in Limpopo, Mashudu Malabi-Dzhangi said the case was postponed to June 24 for trial date. Businesswoman Constance Mohlala, Raymond Makoto Nkwane, Thobamotse Jeremiah Makofane, Simphiwe Nolwethemba Maphisa, Tsokollo Pacanin Monareng and Lerato Pearl Dikhutso each face three counts of fraud, corruption and forgery.

“The accused were arrested in December 2020, and they are out on bail. Constance Mohlala was granted bail of R20 000 and all other accused are out on bail of R10 000 each. “It is alleged that the suspects fraudulently obtained a tender of Talana shacks, by using misrepresentations and forged credentials of land surveyors and architects, while they were not permitted by the professionals to use their documents,” she said.

They allegedly claimed the amount of over R2 million out of R15 million that was supposed to be used for building the 192 shacks and 53 toilets at Talana near Tzaneen. The Special Investigating Unit (SIU) has found that the tender for the construction of Limpopo's most expensive shacks was fraudulently obtained. The SIU probe revealed that the appointed service provider, Aventine Group CC, made misrepresentations and forged documents of industry experts with no links to the company to influence the direction of the bid.

The company was to build 192 temporary houses in Talana hostel in Tzaneen and Extension 10 in Groblersdal, which was meant to help hostel dwellers who were exposed to threats posed by the Covid-19 pandemic during level 5 restrictions. SIU spokesperson Kaizer Kganyago said investigation revealed that Co-operative Governance, Human Settlements and Traditional Affairs appointed an implementing agent, the Housing Development Agency, for the establishment of transitional residential areas.

“The entity then appointed a service provider, Aventino, to construct 192 units to the sum of R12.3 million. An extension of scope was approved to include the construction of 152 pit toilets and installation of three water tanks (10 000 litres), for an additional fee of R3 million, taking the contract value to R15.3 million,” Kganyago said in a statement in September 2021.

He said the service provider only managed to construct 40 shacks at Talana Hostel and submitted two invoices totalling over R2.5 million, which were paid between April and October 2020. “In the Burgersfort Extension 10 site, no structure was completed as there were only half-built ones. In line with SIU Act 74 of 1996, the SIU has referred evidence pointing to criminal action against the director of Aventino, Constance Mohlala, to the National Prosecuting Authority for further action.”