Latest news with #Tshiamiso
The Citizen
7 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.
Daily Maverick
19-06-2025
- Business
- Daily Maverick
Limpopo's multibillion-rand Musina-Makhado Special Economic Zone has ground to a halt
The Musina-Makhado Special Economic Zone, announced in 2018, was intended to attract investments of R40bn, but so far only one company has made a firm commitment to invest. Seven years after its launch by President Cyril Ramaphosa, the multibillion-rand 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. 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 the Limpopo Economic Development, Environment and Tourism portfolio committee. According to 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 2020/21 and 2026/27 in the provincial budget. In response to a question in Parliament in May from the DA's Toby Chance, Tau added that his department'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 more than R85.2-million was approved for consultants, of which just more than 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. 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 more than 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. 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 (EIA) 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'. 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. 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 MMSEZ full-time. Construction on the first projects will start in September, the report says. DM
