The Musina-Makhado Special Economic Zone (MMSEZ) was intended as Limpopo’s flagship development to drive industrialisation and attract investment through a Special Economic Zone model. Yet, nearly a decade since its designation, the project remains stalled, mired in irregularities, governance failures, and legal disputes.
The DA in Limpopo has therefore written to the Chairperson of the Portfolio Committee for Economic Development, Environment and Tourism to request that LEDET commission an independent forensic audit into all operational and infrastructure expenditure incurred by LEDA and MMSEZ (Pty) Ltd in relation to the Musina-Makhado Special Economic Zone (MMSEZ) during Limpopo’s sixth administration.
This audit must include all tenders and contracts awarded, including their rationale, implementation, and management.
Our call follows an oversight visit to the MMSEZ sites by the Portfolio Committee on Public Administration and a report submitted by MMSEZ Board Chairperson Dr NF Mphephu to the LEDET Committee. Although presented as a progress report, it instead highlights a pattern of repeated failure, shifting timelines, and institutional incapacity.
Key concerns informing our call for an independent forensic audit include:
- According to the MMSEZ Board’s own submission, R579 million in contracts have been awarded, and R155 million spent — yet only one project (internal roads) reached partial implementation, and that too was halted due to litigation and non-compliance with SEZ standards.
- The internal roads were built above ground level without the necessary development rights, requiring costly ramps and stormwater corrections, and breaching planning laws.
- There is a pattern of repeated appointments of the same service providers, including:
- Tshiamiso Trading, which abandoned a previous site under dispute, yet was reappointed for sewer works.
- Naledzi Environmental Consultants, DBI, Penyo, and Mamadi & Company, who appear across multiple contracts, raising concerns over potential manipulation of procurement processes.
- Multiple contractors have abandoned sites, citing non-payment, and have lodged legal claims against MMSEZ.
- SLM Consulting Engineers were paid R21.7 million, despite their accepted offer being R19.7 million, suggesting a possible breach of PFMA limits on contract variation.
- In several instances, service level agreements for professional service providers differ materially and above permissible adjustments from original tender submissions.
The DA’s opposition to the MMSEZ’s coal-based metallurgical foundation is well documented, and we continue to advocate for a sustainable alternative. Equally, we remain committed to exposing inefficient, ineffective, wasteful, and potentially corrupt governance and expenditure in Limpopo.