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Limpopo megaproject sued over 'stolen' rocks
Limpopo megaproject sued over 'stolen' rocks

The Citizen

time4 days ago

  • Business
  • The Citizen

Limpopo megaproject sued over 'stolen' rocks

Subcontractor removed R12-million worth of white rock from private land Construction vehicles belonging to Tshiamiso Trading 135, photographed while excavating and loading road-building materials from Boetie Visser's old mine dumps. Photo supplied. A subcontractor on the multi-billion-rand Musina Makhado Special Economic Zone (MMSEZ) project removed R12-million worth of white rock, used to build roads, from a private property without permission. The state-owned company behind the MMSEZ is now being sued by the property owner. But MMSEZ has told the owner to collect the rocks at his own expense, before the end of the month. The subcontractor, Tshiamiso Trading, terminated its contract after receiving R50-million. The company has a track record of receiving controversial government contracts. The state-owned company behind the controversial Musina-Makhado Special Economic Zone (MMSEZ) in Limpopo is facing a R12-million lawsuit after a subcontractor removed approximately 35,000 cubic meters of white rock from a private property without permission. The MMSEZ is a multi-billion-rand megaproject launched by President Cyril Ramaphosa in 2018. More than R100-million has been spent on the project, but there are still no roads, electricity or water connections. It has now emerged that a company subcontracted to build roads, Tshiamiso Trading 135, removed R12-million worth of white rock from an old mine dump owned by Boetie Visser Groep Kontrakteurs, without permission. A subsequent investigation by MMSEZ SOC found that the removal of the road material by Tshiamiso is likely unlawful and criminal. But MMSEZ has not followed the investigator's recommendations and has rejected Visser's requests to be paid for the rocks or for the rocks to be returned. Visser has launched a court case in the Polokwane High Court to claim the R12-million he says is owed to him. But earlier this month, MMSEZ told Visser to collect the rocks at his own expense, denying that they were responsible for the removal of the rocks. Tshiamiso, which has a track record of receiving controversial government contracts, has since cancelled its R200-million contract, after receiving R50-million, citing standing time and ongoing court action. The company's director, Hlamani Bruce Mohlaba, insists the rocks were lawfully removed. Adding to the debacle is that part of the area on which this infrastructure is supposed to be built does not belong to the MMSEZ SOC, and the northern site has not been gazetted to allow for such a development. The MMSEZ has, on several occasions, been accused of bulldozing ahead with development plans, while ignoring legal concerns and the fact that no sustainable plans are in place to secure water on the sites. Unlawful mining In 2022, Tshiamiso was awarded a R200-million contract with MMSEZ to build internal roads and stormwater infrastructure at the MMSEZ's northern site at Artonvilla, north of Musina. They received an additional R100-million contract to build stormwater drainage. On 2 August 2023, the MMSEZ obtained a permit from the Department of Mineral Resources (DMR), which allowed Tshiamiso to start mining for white rock to be used for the roads. An old mine dump was fenced off by Tshiamiso, and the company started removing rocks and taking them to the construction site, about 2km away. But it appears the land, in fact, was owned by Boetie Visser, of Boetie Visser Groep Kontrakteurs CC. In January 2024, Visser contacted the MMSEZ, claiming that Tshiamiso was, without permission, removing crushed stone material that belonged to him. Visser sent several letters to the MMSEZ requesting that they halt the excavation, but Tshiamiso continued. Visser sent a proposal to the MMSEZ on 10 January, offering to sell the high-quality stones to the company. During a meeting between Visser and MMSEZ officials on 22 January, the matter was discussed, and a follow-up meeting was planned to reach an amicable resolution. On 25 January 2024, Visser's lawyer, advocate Elandré Bester, issued a memorandum about the unlawful removal of processed material from his old mine dumps. The memo highlighted that Visser is the lawful owner of the old mine dumps and alleged that the conduct of the MMSEZ and Tshiamiso constituted 'fraud, theft, and larceny'. MMSEZ investigates Officials from the MMSEZ's Legal Services and Infrastructure Development units visited the site on 6 February to investigate. They found it was 'highly unlikely' that Tshiamiso was extracting material from within the permitted area and that it was 'clear that the mining dumps… were outside the designated area of the borrow pit permit'. The MMSEZ investigators also met with Visser, who presented documents to prove he was the owner of the property and had his own mining permit for the white rocks. Visser reiterated his willingness to sell the stones, failing which they should be returned. At that stage, an estimated 35,000 cubic metres, at a value of about R12-million, of crushed stone had already been taken by Tshiamiso. It was agreed that the MMSEZ would provide Visser with feedback three days later, by 9 February 2024. The day after the site visit, Mashile Mokono, the MMSEZ's Senior Manager for Legal Services, compiled a report. It concluded that Tshiamiso could be charged for conducting illegal mining and committing a criminal offence, and said that the company should be held liable for damages. The report recommended that the MMSEZ urgently instruct Tshiamiso to cease excavation, enter into negotiations with Visser to purchase the collected material, and produce records of all materials taken. An estimated 35,000 cubic metres of 'white rock' road-building material stockpiled at Tshiamiso Trading's construction site, approximately two kilometres from Mr Boetie Visser's mine dump. Photo supplied Development stalled By 9 February 2024, the MMSEZ had not provided Visser with feedback as promised. This prompted Visser to apply for an urgent interdict in the Polokwane High Court to stop the unlawful removal and ensure the materials were recovered. But on 5 March, the matter was dismissed because of a lack of urgency. Visser is proceeding with the court action against MMSEZ, SLM Engineers (the consulting engineers overseeing the project) and Tshiamiso and wants to be paid R12-million for the materials removed from his land. In May this year, the MMSEZ board chairperson, Dr Nndweleni Mphephu, presented a report to the Limpopo legislature's portfolio committee on economic development. The report revealed that Tshiamiso had terminated its R200-million contract, citing non-payment of standing time and ongoing court action. Tshiamiso had already been paid R50-million by the time of termination. The report also revealed that the land earmarked for the project's northern site did not belong to the MMSEZ. The land belonged to the Department of Rural Development and Land Reform. Additionally, the area designated for the northern site had not yet been gazetted. 'Come and fetch your rocks' Visser has still not received any payment for the materials. 'I have done nothing wrong. They stole my stone, moved it unlawfully, and now I'm left with a bill and legal costs amounting to half a million rand. And I still don't have my stone back,' said Visser. Visser claims that SLM Engineers knew that Tshiamiso had been extracting rocks from the wrong area. In spite of his ongoing court action, Visser, on 15 July this year, received a letter from Tshifhiwa Irish Bologo, acting CEO of the MMSEZ, telling him to collect the rocks at his own expense before the end of the month. 'As you are aware, MMSEZ was not responsible for the removal of the white rock material from your site as that was done by Tshiamiso Trading without any direct or indirect involvement of MMSEZ,' stated Bologo. This left Visser outraged. 'I didn't put it there. They put it there – their contractors. Now I must transport it back at my own expense? … My offer was simple. I said, pay me, and I'll take my stone back. Now they're saying no, take it back at your own cost,' said Visser. In response to a media enquiry, Bologo said 'Visser is currently engaging with MMSEZ on the removal of the white rocks.' Bologo said that 'MMSEZ is not aware of any instructions by SLM to Tshiamiso Trading to collect the white rocks and therefore no action will be taken against SLM.' As for Tshiamiso, Bologo confirmed that the company still holds the R100-million contract for bulk sewer and waste treatment works construction. She confirmed that a new contractor will have to be appointed to complete the internal roads and stormwater infrastructure. In response to questions, Mohlaba, Tshiamiso's director, said: 'The removal of material occurred lawfully. The claims by Mr Visser presently form the subject matter of an application in the high court. A cost order has already been granted against Mr Visser and is in the process of execution. The application is still pending.' SLM Engineering said that part of the matter had been dismissed with costs by the court. 'Thus, in respect of the law, we cannot comment any further at the moment as this matter is before the court,' concluded Sello Matlakal, a director of SLM. (The cost order referred to by Mohlaba and Matlakala relates only to the urgent application that was dismissed for lack of urgency, not Visser's ongoing court case). A controversial contractor Mohlaba is no stranger to controversy. In 2019, Tshiamiso was taken to court by the Greater Tzaneen Municipality, which accused it of 'undue enrichment' after the company was awarded a R26-million contract for the construction of a 5.8km road and stormwater drainage system. Costs escalated rapidly, and construction was halted when Tshiamiso demanded further payments. It emerged in court that Tshiamiso had made errors in its bid calculations, which influenced the procurement process. The court ruled that the municipality's decision to award the tender to Tshiamiso was unlawful and constitutionally invalid from the outset. At the time, Tshiamiso was also entangled in other similar disputes. In 2016, the Makhado Municipality awarded the company contracts for the construction of two roads, where costs escalated and the projects were halted. Tshiamiso is listed as a legal contingency in the municipality's 2022/23 annual financial statements. At the time, the company was suing the municipality for R7.4-million in unpaid standing time, while the municipality lodged a counterclaim for R11.8-million, alleging 'undue enrichment'. The outcomes of these claims remain unknown. During the covid pandemic, Tshiamiso diversified into the medical supply sector. It was one of 42 suppliers contracted by the Limpopo provincial government to deliver masks and infrared thermometers. This article is published in association with the Limpopo Mirror/Zoutpansberger. This article was republished from GroundUp. Read the original here.

Acquitted: three Chinese nationals escape legal clutches in R100-million perlemoen smuggling case
Acquitted: three Chinese nationals escape legal clutches in R100-million perlemoen smuggling case

Daily Maverick

time01-07-2025

  • Daily Maverick

Acquitted: three Chinese nationals escape legal clutches in R100-million perlemoen smuggling case

Cold storage, pig stomachs and 40 tons of perlemoen weren't enough to land convictions in one of South Africa's biggest marine smuggling cases. On Tuesday, the accused walked — and the State was left empty-handed. Despite a four-year investigation, multiple arrests and more than 40 tons of confiscated illegal perlemoen, three Chinese nationals accused of running a R100-million abalone smuggling racket were acquitted on all charges in the Gqeberha Division of the High Court on Monday, 30 June 2025. In 2018, the Hawks intercepted shipping containers filled with perlemoen in the port of Port Elizabeth. These were quickly linked to several other containers in the Northern Cape, Western Cape and KwaZulu-Natal, forming what investigators believed was a strong case against the owners of a Cape Town-based seafood import company. About 40 tons of perlemoen, found hidden in tripe and pig stomachs in cold storage containers, were allegedly linked back to Blue Fin Marine Trading, owned by husband and wife Kai Ou Yang and Hsien-Chu Ou Yang, along with the manager of the company, the wife's younger brother Chu-Kai Peter Chang. However, on Monday Judge Fungile Dotwana found the State had not linked any of the accused directly to the alleged racket, and acquitted them on all charges against them. 'None of the three accused were proven to be in physical possession of perlemoen… and they vehemently denied any involvement in the illicit perlemoen trade. 'Looking at the totality of the evidence, the State has failed to prove its case beyond reasonable doubt,' Dotwana said before excusing the accused from the dock. A trail of containers and cold storage facilities The case before court centred around the activities of Blue Fin, a company founded in 2005 that supplied restaurants and supermarkets in and around Cape Town with imported seafood. It was alleged that the company experienced some financial difficulties and looked for avenues to expand its business. One such option was to export beef and other meat products from South Africa to various ports around the world. However, the State alleged that this was little more than a ruse to cover the illegal export of perlemoen. After receiving information that led to the initial discovery in Gqeberha of 158 boxes of perlemoen hidden among pig stomachs in a container linked back to Blue Fin, the Hawks' investigation attempted to connect the dots between this container and several others across the country. In February 2017 two illegal perlemoen processing facilities in Cape Town were added to the list. In Killarney 28,733 units of perlemoen were recovered, and in Montague Gardens a further 12,266 units were found. Two weeks later, three tons of perlemoen were found in a cold storage facility in Cape Town. The pallets containing the perlemoen allegedly belonged to Blue Fin. Besides the initial bust in Gqeberha, three more containers were intercepted in 2018. Nine tons of perlemoen were found in containers in the Durban harbour, while another 900 boxes of tripe, with perlemoen hidden inside, were found in the Port of Port Elizabeth. The Hawks tailed the final container from a storage facility in Cape Town, following it all the way into the Northern Cape where it broke down about 30km from the town of Springbok. There the container was seized and more than 340kg of perlemoen found inside. Boxes relabelled, but links remain unclear Witnesses before court testified how boxes belonging to Blue Fin were brought to cold storage facilities in Cape Town, taken away by trucks, and returned shortly thereafter with new labels and stickers. Employees at these facilities assisted the Hawks in their investigation, and positively identified boxes labeled to contain 'meaty bones' as the ones containing illegal perlemoen. In their defence, all three accused denied any knowledge or involvement in the illegal perlemoen trade. While several individuals, including truck drivers and employees of Blue Fin, were arrested and convicted of activities related to the illegal trade and transport of perlemoen since 2017, Judge Dotwana found that none of the evidence presented to the court directly tied the owners or the manager to the illicit activities. The accused were represented by Advocate Michael Hulley, who has previously represented former president Jacob Zuma. After proceedings the newly acquitted individuals quickly filed out of the dock and left the court building. When asked if they would like to give any comment on the judgment, Hulley declined on behalf of his clients. The National Prosecuting Authority (NPA) said it would consider reviewing the judgment. 'The NPA has noted the judgment in which three Chinese nationals were acquitted in a R100m perlemoen racketeering case. We will study the judgment carefully and consider possible legal avenues to take,' said NPA spokesperson Luxolo Tyali. DM

KZN premier summoned to appear before portfolio committee
KZN premier summoned to appear before portfolio committee

The Citizen

time22-06-2025

  • Politics
  • The Citizen

KZN premier summoned to appear before portfolio committee

KZN Premier Thami Ntuli has been summoned to appear before the Portfolio Committee on Office of the Premier, Community Safety and Liaison to give clarity on allegations that the youth manager in his office threatened to physically harm the former director general, Dr Nonhlanhla Mkhize. Portfolio Committee chair Mbali Frazer alleges that Mkhize's crime was to refuse to sign off an appointment letter related to the R100-million Youth Fund. ALSO READ: Embattled KZN director-general resigns 'We believe it will be an abdication of our responsibility not to allow the premier of the province to address these serious allegations in an appropriate platform,' said Frazer. 'We have written a letter to him requesting him to appear before the committee. As the committee responsible for playing an oversight role over the executive, we believe such allegations warrant our attention. 'The Office of the Premier has a critical role to play in terms of the co-ordination of the work of provincial government departments on service delivery. The destabilisation of the Office of the Premier in any form, including threats to physically harm a senior female civil servant, should be viewed in a serious light by all leaders of society across all political affiliations,' she said. The ANC Youth League strongly condemns the actions of Premier Thami Ntuli for allegedly shielding perpetrators of violence, particularly gender-based violence (GBV), within his administration. ANCYL KZN Provincial Secretary Lulama Mabude said they are appalled by these allegations. 'We fully support the Youth Fund initiative established by the former ANC premier, Numusa Dube-Ncube, to empower young people to thrive in business and contribute meaningfully to the economy. 'However, we categorically reject the misuse of these funds to benefit non-compliant applicants or those selected based on political affiliation. 'We demand an immediate halt to this process and call for a transparent, merit-based review to ensure funds serve their intended purpose of uplifting KZN's youth,' said Mabude. She added that the youth manager in question is alleged to have pressured Mkhize to approve these funds to benefit his political allies and associates, undermining the integrity of the Youth Fund. 'We will not tolerate government officials perpetuating GBV and escaping accountability. 'South African women and youth live in constant fear due to harassment and abuse, and the premier's office has failed to address these serious allegations,' said Mabude. Attempts to obtain comment from the Office of the Premier were unsuccessful at the time of going to print. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

Multi-billion Limpopo mega-project has ground to a halt
Multi-billion Limpopo mega-project has ground to a halt

The Citizen

time20-06-2025

  • Business
  • The Citizen

Multi-billion Limpopo mega-project has ground to a halt

Makhado Special Economic Zone, announced in 2018, was intended to attract investments of R40-billion. The mega industrial project in the Musina Makhado Special Economic Zone has ground to a halt. Photos: supplied by Living Limpopo The Musina Makhado Special Economic Zone in Limpopo, announced in 2018 by President Cyril Ramaphosa, was intended to attract investments of more than R40-billion. But seven years later, the project has all but ground to a halt. Only one company has made a firm commitment to invest. Though more than R100-million has been spent, there are no roads, electricity or water connections; and the company contracted to build roads has terminated the contract. However, the chair of the board says a turnaround plan is in place and construction on the first infrastructure projects will start in September. Seven years after its launch by President Cyril Ramaphosa, the multi-billion Musina Makhado Special Economic Zone (MMSEZ) in Limpopo is at a standstill. R67.5-million has been spent on consultants and R50-million on roads and infrastructure. But there is no infrastructure, no electricity connection, no roads and no water. Described on its website as 'a flagship of the Limpopo Provincial Government' the MMSEZ is 'a green field investment platform consisting of two sites' – Artonvilla, near Musina, intended for light manufacturing, and Mopani, near Makhado, intended for heavy industry. The zone claims to offer 'state of the art logistics facilities promoting operational excellence' But though the MMSEZ was touted to bring in R40-billion in investments, so far only one company has made a firm commitment to invest. ALSO READ: Revival of job-creating initiative in Limpopo A report by the chair of the MMSEZ board, Nndweleni Mphephu, to the Limpopo Economic Development, Environment and Tourism department, shows how little has happened in what was to be a mega industrial park in the heart of the Limpopo Valley. The report, dated 28 May, follows questions in Parliament and an oversight visit to the area by members of the Limpopo Economic Development, Environment and Tourism portfolio committee. According to the Minister of Trade Industry and Competition Parks Tau, R2.27-billion would be needed for bulk infrastructure on the site, and R1.07-billion had been set aside between 2020/1 and 2026/7 in the provincial budget. In response to a question in Parliament in May from the DA's Toby Chance, Tau added that the DTIC's Industrial Zones Programme was helping the MMSEZ with advisory support. Some of the money has already been spent, much of it on consultants. In his report, Mphephu gives a list of consultants, service providers and contractors who have benefited to date. Spending of just over R85.2-million was approved for consultants, of which just over R67.5-million has already been paid to 17 consultants, including engineers, planners, quantity surveyors, project managers and horticulturists. Just under R40-million has been paid to service providers, including Eskom. ALSO READ: Limpopo's special economic zones expected to create 21,000 jobs According to the report, three contractors have so far benefited, including Tshiamiso Trading 1 and Tshiamiso Trading 2, which received a R200-million contract for roads and stormwater infrastructure and a R99.3-million contract for bulk sewer and wastewater treatment works. A contract for R134-million was awarded to Rembu Construction, also for the construction of bulk sewer and wastewater treatment works. But though some earthworks have been done by Tshiamiso on the northern site, there are no finished roads, electricity or water on either site. After being paid just over R50.4-million, Tshiamiso had to stop work on the northern site, after beginning bush-clearing, because the land belonged to a different organ of state and transfer had to take place first, the report says. Tshiamiso has now terminated the contract and is claiming more money from the MMSEZ, citing non-payment for standing time. This dispute is currently in litigation. Tshiamiso Trading is also accused of unlawfully removing white rock materials from another site to the MMSEZ site without the owner's consent or any formal agreement or compensation. ALSO READ: Limpopo unveils R1.8 billion budget boost for economic development The MMSEZ southern site was gazetted as a Special Economic Zone in 2017, but it turns out that the northern site at Artonvilla has yet to be gazetted, according to a response by Tau to a question in Parliament. Tau said the Limpopo government had indicated it would submit a request before the end of June 2025 to gazette the northern site. In his report, Mphephu noted fierce 'oppositions, dissenting views and pushbacks' mostly from environmental groups, over the southern site. Some of these were challenging the Environmental Impact Assessment in the Polokwane High Court. But in the absence of an interdict, the report says, 'all activities leading to the development, including township establishment processes are expected to proceed.' Tshiamiso Trading is one of the contractors which has been paid. When President Cyril Ramaphosa publicly announced the MMSEZ in September 2018 following his return from the Forum for Africa and China Cooperation, it came with the promise of an initial investment value of more than R40-billion. To date, little of that money appears to have materialised. ALSO READ: It's war on power, water theft to save Limpopo economic zones Responding to questions in Parliament in May, Tau gave a list of investment pledges amounting to more than R8.64-billion, of which R2.1-billion has been verified and validated from eight prospective investors. But according to the report, only the China-based Kinetic Development Group has come to the party, with a R16-billion promise of a ferrochrome smelter on the southern site, once township development on the site is approved, and subject to EIA approvals. If investors do come, one of the biggest questions will be: where is the water going to come from in this semi-arid area? The MMSEZ has approached the Water Services Authority (Vhembe) and the catchment management agency (the Department of Water and Sanitation, DWS) in the region to determine whether they have capacity, either from treated or raw water, to supply the developments. According to the report, Vhembe agreed to provide the MMSEZ with some of its allocation for raw water to kickstart development on the northern site. The DWS said treated water could be brought from Zimbabwe by pipeline for the future development of the site. 'For the south, a few boreholes were drilled in order to start the development of the site. For further development, a pipeline needs to be built to connect to the bulk pipeline from Zimbabwe. Furthermore, two dams are earmarked to be constructed in future to specifically provide water to the site as it grows,' the report says. According to the report, the MMSEZ has now implemented a 'turnaround plan' including a review of the design of roads and stormwater. A division of the Industrial Development Corporation has been appointed as implementing agent, with four professional engineers assigned to the MMEZ full-time. Construction on the first projects will start in September, the report says. This article is published in association with the Limpopo Mirror/Zoutpansberger. Correction on 2025-06-19 09:53 This article has been amended to clarify that the visit to the site was by members of the Limpopo Economic Development, Environment and Tourism portfolio committee, not by MPs. This article was republished from GroundUp. Read the original here.

Pretoria hospitals prioritised for winter infrastructural upgrades
Pretoria hospitals prioritised for winter infrastructural upgrades

The Citizen

time19-06-2025

  • Health
  • The Citizen

Pretoria hospitals prioritised for winter infrastructural upgrades

The Gauteng Department of Health (GDoH) has prioritised upgrading winter-related equipment throughout its facilities to accommodate heavy usage at this time. Steve Biko Academic, Pretoria West, and Kalafong Provincial Tertiary hospitals were among the local facilities which received these upgrades. The department said it has prioritised infrastructure such as boilers, chillers, heat pumps and air conditioners, all of which age and come under pressure during winter. Last month, several facilities reported breakdowns in their boiler systems, resulting in an inconsistent supply of hot water. The department has since said its contractors are on standby to respond to emergencies and were able to restore the systems of all affected facilities. 'The reality we are facing is that critical equipment such as boilers, chillers, heat pumps, and air conditioners is old and has not been serviced appropriately for a long time. This is one of the reasons we have now capacitated the departmental infrastructure unit so that it can implement the maintenance programme in-house,' said Health and Wellness MEC, Nomantu Nkomo-Ralehoko. Nkomo-Ralehoko added that the department has set aside R100-million in the current financial year to recapitalise critical equipment across facilities. Pretoria West Hospital experienced leaking pipes, while Kalafong and Steve Biko hospitals were among the facilities reporting issues with their calorifiers (water tankers that heat and store water for later use), which have since been resolved. The department assured residents that its recapitalisation programme is currently underway and is instrumental in reducing further breakdowns, and thanked them for their patience. Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here

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