Macua says R284 million in social development funds missing from South African mining sites

IOL News

14-05-2025

In a statement on Tuesday, Macua - a prominent social and community advocacy organisation - argued that if this pattern was extrapolated nationwide, it pointed to an astonishing R25 billion in potential theft from communities dependent on mining activities.
Image: Supplied
Banele Ginidza
The Mining Affected Communities United in Action (Macua) has announced that a conservative estimate of at least R284 million in Social and Labour Plan (SLP) funds remained unaccounted for across 11 mining sites.
This alarming trend, termed 'Crumbs Capture,' suggests a systematic appropriation of developmental funds intended to uplift mining-affected communities.
In a statement on Tuesday, Macua - a prominent social and community advocacy organisation - argued that if this pattern was extrapolated nationwide, it pointed to an astonishing R25 billion in potential theft from communities dependent on mining activities.
'Crumbs Capture' describes a morally bankrupt ecosystem where even the limited resources allocated for development are siphoned off through inflated tenders, ghost projects, falsified delivery reports and elite capture, all while communities languish in deepening poverty.
The findings will be formally presented in a report scheduled for launch this Thursday, representing the third volume of Macua's series of community-led investigations conducted since 2018.
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This report culminates from extensive audits of SLPs across various provinces, including North West, KwaZulu-Natal, Mpumalanga, Limpopo, Free State, and Northern Cape, revealing the stark realities experienced by communities in Phola, Mononono, Robakala, Ikemeleng, Meloding, and Magojaneng, among others.
"Rather than benefiting communities, these resources are routinely iInflated through tenders, reported as complete without delivery, hijacked by local elites and used to greenwash exploitation under the guise of corporate social responsibility," it said.
"In essence, 'Crumbs Capture' refers to the looting of the little that was meant to redress historical injustice—a morally bankrupt system where even the crumbs are stolen, deepening poverty and inequality in the name of development."
The audits illuminate a disheartening disparity: while the 11 audited mining companies reported over R376.25m in SLP commitments, only R92.25m was confirmed to have been delivered in terms of tangible infrastructure or services.
This discrepancy leaves a staggering R284m unaccounted for — either undocumented, misrepresented, or lost to fraudulent practices.
Macua said the 11 companies involved reportedly generated a collective turnover of R218.8bn over the SLP period, yielding profits estimated at R72.23bn.
Such figures starkly highlight the grotesque imbalance between corporate profits and community neglect.
Macua said while mining firms thrive, the communities meant to benefit from legally mandated development are left grappling with crumbling infrastructure and unrealised promises.
"The audit findings do not reflect isolated administrative errors—they reveal a systemic model of developmental dispossession, where accountability mechanisms are absent, public institutions remain silent, and mining companies operate with near-total impunity," Macua said.
"The R284 million unaccounted for is not just a number—it represents broken clinics, unsafe roads, undelivered skills programmes, and lives diminished by a system designed to extract and abandon."
The report also critiques the Just Transition Illusion, a narrative woven into the broader context of the Just Energy Transition (JET).
While government and mining firms tout JET as a pathway to inclusive growth and climate resilience, the report depicts a bleaker reality: JET is being employed as a facade to conceal systemic fraud, elite collusion, and broken commitments, with SLPs that should redistribute mining wealth instead acting as instruments of theft.
The community audits revealed shocking completion rates across mining areas. In Mononono, for example, an abysmal 10% completion rate was tallied, with a mere 5% of promised community benefits delivered.
Similarly, Rabokala achieved just 7.1% completion and 9.6% value, while MNS reported no project delivery whatsoever. These findings collectively paint a portrait of a systematic pattern of exclusion, misreporting, and financial opacity.
The Chancellor House case study in Magojaneng serves as a striking example of these discrepancies. Here, the United Manganese of Kalahari (UMK)—partially owned by Chancellor House, the investment arm of the African National Congress—failed to account for over R172m in SLP obligations.
Official reports boasted extensive infrastructure development, yet investigations revealed a stark contrast: little evidence of completed projects, and community members reported exclusion from essential planning processes.
Visit: www.businessreport.co.za