Vhembe Municipality Faces Questions Over R25 Million in Payments

Vhembe District Municipality is facing serious questions over payments of about R25 million made to two companies over a three-month period.

The companies named in the allegations are Conceptual Engineering and Batatise Consulting.
The allegations relate to payments made during April, May and June. Questions also raised about the tax compliance documents and tender requirements of the two companies.

According to information provided for this investigation, the companies received millions of rand from Vhembe District Municipality during the period under review.
The payments have raised concerns because other companies that met the required tender conditions were allegedly available.

The matter also raises questions about the role of Municipal Manager Norman Kutama, who serves as the accounting officer of the municipality.
As accounting officer, Kutama has important responsibilities in relation to municipal procurement and financial management.

Questions now arise over whether the municipality followed its own supply-chain management rules when it appointed.
There are also claims that the two companies did not have all the required tax documentation when they received the work.

The municipality has reportedly treated the expenditure as Irregular Expenditure.
The Mayor also accused of knowing about the matter. Information supplied to this investigation claims that the Mayor recommended that Council write off the expenditure as Irregular Expenditure.

However, writing off or recording irregular expenditure does not remove questions about how the money spent.
Irregular expenditure requires proper investigation. Officials must also determine why the irregular spending happened and whether anyone should face consequences.

The continued use of the two companies has become another major concern.
According to the allegations, Conceptual Engineering and Batatise Consulting continue to receive municipal work and payments.

Key question: If the companies failed to meet the required procurement conditions, why did the municipality continue to use them?
The investigation also seeks clarity on whether the companies remain on the municipality’s panel of service providers.

If they remain on the panel, the municipality should explain why.
The R25 million figure also requires verification through official municipal records. Payment schedules, purchase orders, contracts, tax compliance records and Council documents could help establish the full picture.

This investigation does not conclude that any person or company committed wrongdoing. Allegations will be tested against official records and responses from the municipality, and the companies involved.
Vhembe District Municipality, Mayor, Conceptual Engineering and Batatise Consulting should be given an opportunity to respond to the allegations.

The investigation into 4Cus Group is also nearing completion.

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