Matjhabeng
By Mpho Moloi
Minister Macpherson suspends EPWP fund transfers to Matjhabeng Municipality amid allegations of abuse. The Minister of Public Works and Infrastructure, Dean Macpherson, has taken strong action by halting all Expanded Public Works Programme (EPWP) grants to the Free State municipality following reports that ANC-linked individuals are receiving inflated salaries from the programme. This move comes after serious claims that former ANC councillors and other politically connected figures are earning over R31,000 per month, far above the typical EPWP stipend, while ordinary workers and unemployed youth struggle.
The decision to suspend the funds was announced in a statement by the minister, who expressed deep concern over the misuse of the EPWP. He highlighted that the programme is meant to offer short-term, skills-based work opportunities to unemployed South Africans, not to serve as a tool for political patronage or personal gain. “The EPWP is an essential lifeline for many in communities across the country, including in Matjhabeng, and it would therefore be wholly unacceptable if any politician or official is found to have used the programme for personal benefit. We simply cannot turn a blind eye when serious allegations of abuse are raised, which is why I have instructed the Department to suspend EPWP fund transfers until a formal investigation can be completed,” Minister Macpherson said.
Allegations of Inflated Salaries and Patronage Networks
According to the City Press investigation into the Expanded Public Works Programme (EPWP) abuse in Matjhabeng Local Municipality, several ANC-linked individuals are receiving inflated salaries far exceeding the programme’s guidelines. The report highlights how the EPWP, intended for short-term work opportunities for unemployed and low-income South Africans, has been misused to benefit former ANC ward councillors and a sitting party secretary.
Key individuals mentioned include:
• Mamoipone Mfebe, former ward 10 councillor, employed as EPWP special programmes officer with a gross monthly salary of R31,691, net salary of R26,453, and an annual package of R380,292.
• Thabo Petersen, former ward 4 councillor, employed as EPWP assistant staff with a gross monthly salary of R31,691, net salary of R26,445, and an annual package of R380,292.
• Buti Mahlumba, former ward 6 councillor, employed as EPWP service delivery assistant with a gross monthly salary of R31,691, net salary of R26,145, and an annual package of R380,292.
• Mohlophehi Molelekoa, former ward 5 councillor, absorbed into the EPWP shortly after leaving office, though specific payslip details were not detailed in the report.
• Tshediso Moholobela, current ANC ward 30 secretary, employed as EPWP service delivery assistant with a gross monthly salary of R31,691, net salary of R26,154, and an annual package of R380,292.
These salaries, under EPWP department code 0690, are more than ten times the average stipend (typically R2,900 to R5,000 per month) and violate the programme’s rules for temporary, skills-based jobs prioritising vulnerable groups like youth, women, and people with disabilities. Municipal insiders described this as a “salary parachute for loyal comrades” under Executive Mayor Thanduxolo Khalipha’s administration, preventing job access for thousands of unemployed young people in areas like Welkom, Odendaalsrus, and Thabong.
The report also notes repeat violations, including diversion of EPWP funds to overstaff political offices of Khalipha and Council Speaker Charles Stofile (also referred to as Bheki Stofile), with more than 60 people placed in these roles against 2022 regulations from the Department of Cooperative Governance and Traditional Affairs. One EPWP coordinator was found earning R64,967 gross monthly, comparable to senior managers.
During a parliamentary oversight visit, committees confronted Khalipha and Stofile over the scandal, questioning salary discrepancies and bloated staffing. Khalipha requested time to investigate and report back, citing prior disagreements with regulations.
Municipal spokesperson Tshediso Tlali responded by invoking the Protection of Personal Information Act and asking for proof of allegations, while local activists expressed concerns over eroded public trust and lost opportunities for unemployed youth. Attempts to contact the former councillors for comment were unsuccessful.
Investigations have revealed that several former ANC ward councillors and a current party secretary in Matjhabeng are on the EPWP payroll, earning salaries that exceed the programme’s guidelines by a wide margin. Documents show that these individuals were absorbed into the programme soon after leaving office, with no proper recruitment processes followed. This has sparked outrage, as it appears to deny job opportunities to thousands of unemployed young people in areas like Welkom, Odendaalsrus, and Thabong.
Specific details from payslips dated February this year confirm the high earnings under EPWP department code 0690. For example:
• Mamoipone Mfebe, former ward 10 councillor, holds the position of EPWP special programmes officer with a gross monthly salary of R31,691, net salary of R26,453, and an annual package of R380,292.
• Thabo Petersen, former ward 4 councillor, is listed as EPWP assistant staff with a gross monthly salary of R31,691, net salary of R26,445, and an annual package of R380,292.
• Buti Mahlumba, former ward 6 councillor, serves as EPWP service delivery assistant with a gross monthly salary of R31,691, net salary of R26,145, and an annual package of R380,292.
• Tshediso Moholobela, current ANC ward 30 secretary, also as EPWP service delivery assistant, earns a gross monthly salary of R31,691, net salary of R26,154, and an annual package of R380,292.
These figures are more than ten times the average EPWP stipend, which typically ranges from R2,900 to R5,000 per month. Municipal insiders claim that the EPWP has been turned into a “salary parachute” for loyal ANC comrades, with funds meant for public works projects instead sustaining political networks. One senior official noted: “These people were employed by Thanduxolo Khalipha after their terms ended. Instead of helping unemployed youth, the EPWP has become a salary parachute for loyal comrades.”
Further revelations point to even higher salaries in some cases. A previous probe uncovered that at least one EPWP coordinator earns a gross monthly salary of R64,967, with a net pay of R45,545 – levels comparable to full-time senior managers, not temporary programme participants. This suggests a pattern of systemic abuse, where EPWP funds are diverted to overstaff political offices, violating regulations from the Department of Cooperative Governance and Traditional Affairs.
Parliamentary Oversight and Municipal Response
This week, a joint parliamentary oversight visit to the Free State, involving the portfolio committee on cooperative governance and traditional affairs, the standing committee on public accounts, and the standing committee on the Auditor-General, directly confronted Matjhabeng’s leadership over the EPWP scandal. The committees, joined by provincial officials, interrogated Executive Mayor Thanduxolo Khalipha and Council Speaker Bheki Stofile (also referred to as Charles Stofile in some contexts) about the allegations.
Committee members pressed for answers: “Please tell me about the EPWP scandal. We’ve seen some reports. We have the reports indeed. I’d like to hear from you – what is the situation regarding the EPWP implications? Because you are very badly implicated, both of you.” They highlighted salary discrepancies, noting: “Employees normally on EPWP receive between R2,900 and R5,000 per month. I have payslips where someone is getting R65,000 a month on EPWP. So please, and when you respond, don’t mislead Parliament.”
Questions also focused on bloated staffing in political offices: “How many staff are in both the office of the mayor and the speaker? There are limits for political office bearers as per the staff regulations of 2022. These are political offices – normally a PA, a driver, etc. But it’s being said that you’ve got quite an overstaffed and bloated support staff.” Insiders allege that more than 60 people, mostly under EPWP, have been placed in these offices, far exceeding the allowed limits.
Khalipha appeared unprepared, responding: “On the issue of the EPWP … we have not prepared that. We would like to be given time to investigate and come back to the portfolio committee with a report on the issues of the EPWP.” On staffing, he said the matter had been raised before with former minister Nkosazana Dlamini-Zuma, adding: “At the time, we did not agree with what was regulated by the minister. I think the president of the [municipal association] will be able to respond on that matter – why we still have more staff than what was agreed in the regulation.”
In response to further inquiries, Matjhabeng mayoral spokesperson Tshediso Tlali stated that the executive mayor’s parliamentary response stands. “The matter in question was raised during the sitting, and the executive mayor indicated that the municipality will investigate the issue and submit a report to the portfolio committee for its perusal,” he said. “We kindly remind you of the provisions of the Protection of Personal Information Act, which prohibits the release of personal information without the necessary permission. In future, we would appreciate it if you could provide proof to support your allegations, enabling us to verify and respond accordingly.”
Broader Context of EPWP Abuses and Reforms
The Matjhabeng case is part of wider concerns about the EPWP, launched in 2004 as one of South Africa’s largest public employment programmes to tackle unemployment through labour-intensive projects like road maintenance, sanitation, and community work. Under EPWP rules, jobs must be short-term (limited to 24 months in a five-year cycle), skills-based, and prioritised for vulnerable groups such as youth, women, and people with disabilities. However, in Matjhabeng, sources say positions are held indefinitely by ANC-connected figures, turning the programme into a parallel employment system.
Minister Macpherson has emphasised the need for reform, noting that allegations like those in Matjhabeng reinforce the urgency to eliminate corruption and political interference. Through his nationwide EPWP Listening Tour, which began in the Eastern Cape and has visited provinces like KwaZulu-Natal and the Northern Cape, he has heard similar stories of abuse, including bribery, nepotism, and exclusion based on political affiliations. “Through the EPWP Listening Tour conducted nationwide, we have heard several serious allegations of abuse – such as those in Matjhabeng – and it is therefore critical that the programme be strengthened to eliminate any possibility of corruption and political patronage,” he said.
The minister vows to improve transparency in appointments, partner with the private sector for better skills transfer, and ensure the programme serves as a stepping stone to permanent jobs rather than a long-term dependency. Phase V of the EPWP, launched in April 2024, aims to create five million work opportunities by 2029, focusing on areas like waste management, road paving, and facility maintenance. Recent violent protests by former EPWP workers in eThekwini highlight the programme’s challenges, with Macpherson condemning damage to public property while calling for reforms to provide sustainable pathways.
In his first year in office since July 2024, Macpherson has taken bold measures to combat corruption in public works, including cracking down on failed projects and tightening accountability. He has highlighted efforts to restore public trust by addressing mismanagement of funds and ensuring programmes like EPWP are free from patronage. Despite facing pressure and allegations from some quarters, including calls for his removal amid claims of targeting, Macpherson remains focused on reforms.
Impact on Local Communities and Ongoing Issues in Matjhabeng
Local activists and community organisers in Matjhabeng argue that such abuses erode public trust and worsen youth unemployment. “You can’t have 30-year-olds in townships sitting at home with no work, while former councillors earn salaries meant for public works projects,” said a community organiser in Thabong. “If nothing changes, this will destroy public confidence in what was supposed to be a lifeline for unemployed South Africans.”
The salaries paid to these few individuals could fund dozens of proper EPWP jobs for young people in struggling areas. Efforts to contact the named former councillors for comment have been unsuccessful.
Matjhabeng’s leadership faces additional scrutiny. Mayor Khalipha has been embroiled in legal battles, including a conviction in 2024 by the Welkom Magistrate’s Court on one count of assault and two counts of crimen injuria for attacking a municipal worker. He was sentenced to three months imprisonment or a fine, but was reinstated by the ANC despite opposition. Groups like the ANCYL in Lejweleputswa demanded his resignation following his arrest in June 2024 for common assault on a bodyguard. COSATU in the Free State rejected his proposed reinstatement in February 2025, citing abuse of power and failure to investigate linked issues like missing municipal firearms.
SAMWU has condemned the ANC’s reinstatement as a betrayal of workers and justice, considering legal action against it. Khalipha has also faced allegations of misusing municipal funds for ANC election campaigns in 2023, refusing to pay service providers, and owning a R3.4 million mansion under investigation by the Public Protector. In February 2025, the municipality was placed under administration due to a complete collapse in service delivery.
After 20 years, Minister Macpherson is committed to reforming the EPWP to ensure it empowers intended beneficiaries free from interference. “We are committed to reforming the EPWP to ensure it remains a viable platform for empowerment well into the future, as we work to build a better South Africa,” said James de Villiers, spokesperson to the minister. This suspension and investigation mark a key step in addressing these deep-rooted issues.
🔴 Central News Special Edition | Issue 114 🔴 Download the Latest Print and E-Edition | Headline: President Cyril Ramaphosa Fires Nobuhle Nkabane as Higher Education Minister, Appoints Buti Manamela
Download Here:
Direct PDF File Here:
https://centralnews.co.za/wp-content/uploads/2025/07/Central-News-Issue-114-1.pdf
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
_________
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube
#centralnewsza #news #politics