A small South African municipality paid R24 million for a fleet management contract worth R4 million

The Mogalakwena Municipality in Limpopo made payments of R24 million for a fleet-management contract initially valued at R4 million.

This was one of the corrupt deals highlighted by Jacques Smalle, a member of the Limpopo Provincial Legislature.

He said that the DA demands a clean-up of Mogalakwena Municipality following 12 years of dysfunctional governance and systemic corruption under ANC rule.

“It is alleged that a fleet-management contract initially valued at approximately R4 million resulted in payments of about R24 million,” he said.

He added that the Mogalakwena Municipality awarded the R24 million tender to Fleetmove irregularly in December 2022.

This included a R230,000 payment to a company linked to suspended municipal manager, Morris Maluleke, which constituted gratification connected to the contract.

“Maluleke’s record in public service raises concerns. He served at Madibeng Local Municipality when R31 million was invested in VBS Mutual Bank,” Smalle said.

“His appointment as Mogalakwena municipal manager was set aside by the High Court over selection irregularities.”

He now faces separate allegations of fraud, corruption and money laundering linked to the fleet-management contract.

These issues raise concerns about the protection of public funds, particularly given Mogalakwena’s history of ANC governance and procurement failures.

In 2019, the municipality was placed under a Section 139 administration amid serious financial and governance challenges.

In January 2022, 27 accused persons faced charges relating to alleged tender irregularities involving approximately R15 million.

More recently, in September 2025, the Special Tribunal declared the R167.9 million Easyway Tarmac Pave and Projects contract unlawful and invalid.

The Special Tribunal further ordered Easyway Tarmac Pave and Projects to repay R68.87 million plus interest.

“Mogalakwena cannot afford another cycle of investigations without lasting accountability,” Smalle said.

“Public money must fund essential services, not be lost through unlawful or irregular procurement.”