The City of Ekurhuleni has pledged to recover millions of rand lost in a stalled project to build its new metro headquarters, with Mayor Nkosindiphile Xhakaza declaring that residents have not received value for their money.
The project, initially commissioned in 2017 with a budget of R145 million, has ballooned to R272 million, yet the building remains incomplete. Mayor Xhakaza described the unfinished structure as a “white elephant,” criticizing the lack of progress despite massive expenditure.
Forensic Report Exposes Irregularities
A forensic audit has revealed shocking financial mismanagement, including:
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Unauthorized spending and fruitless expenditure totaling R272 million.
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Misrepresentation of project deliverables and approval of excessive variation orders.
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Overpricing of materials and misappropriation of funds, with contractors paid without progress reports.
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Payment for defective work, raising concerns about corruption and negligence.
Mayor Xhakaza confirmed that the matter has been referred to the South African Police Service (SAPS) and the Special Investigating Unit (SIU) for further investigation.
Political Pressure Mounts
The Democratic Alliance (DA) in Ekurhuleni has demanded accountability, questioning who authorized the irregular payments and who benefited from them.
“Officials must be held accountable, and residents must see justice served,” the DA stated. “The people of Ekurhuleni are not only victims of failed service delivery but also of a government that treats their money as a personal piggy bank.”
The opposition party has claimed victory in pushing for the forensic report’s release and vows to continue pressing for consequences.
Next Steps
The city has vowed to tighten financial controls and ensure proper oversight of future projects. Meanwhile, residents await answers as investigations unfold.