DA takes Steve Tshwete council to court over controversial Mhluzi substation irregularities 

Middelburg — Following the Democratic Alliance’ (DA) intention to sue the Steve Tshwete Local Municipality over the contentious forensic investigation outcome on the Mhluzi intake substation, the Steve Tshwete council booted out its own attorneys, citing a bad record of court losses.

On 18 November 2025, council resolved to request assistance from the MEC of Cooperative Governance Human Settlement and Traditional Affairs (COGHSTA), Speed Mashilo, to appoint an external law firm to handle the DA’s legal challenge.

“The council has lost faith in the internal team of attorneys,” council speaker Thato Mathunyane, said the municipality rejected its internal attorneys because they had recently suffered multiple court setbacks. “With that track record, it doesn’t make sense to persist with them. We’ve already opened up applications for new attorneys who want to join a fresh panel.”

He also added that COGHSTA’s involvement was necessary because the department has an oversight mandate over municipalities. “Their intervention is essential for fulfilling that responsibility,” he said.

The DA is suing because the council dismissed the forensic report on 26 August 2026. The investigation by Mgibe Consulting looked into alleged corruption surrounding the construction of the 132 kilovolt electrical substation at Chromeville in Mhluzi. The report found that FTech Services (Pty) Ltd was appointed as the contractor without meeting the necessary requirements set by the Construction Industry Development Board (CIDB).

The report also revealed that the R162 million cost of constructing the new substation diverged from the R30 million proposed in Integrated Development Plan (IDP), resulting in a R132 million discrepancy. Ultimately, F-Tech was awarded a total of R179 551 326,31 for the project — an eyebrow-raising R149 million over the original budget.

Several high-ranking officials were implicated, including former municipal manager Bheki Khenisa, former director of electrical and engineering services Ntokozo Gubevu and the previous chief financial officer David Mogufe.

The report recommended disciplinary action and the recovery of funds that exceeded the original budget.

Despite the report’s findings, ANC — supported by the EFF — dismissed the report during a special meeting on 26 August 2025, arguing that the investigation had irregularities and questioned the credibility of the consulting firm. They also supported continuing with FTech’s electrification work.

DA contends that the rejection amounts to a failure to act against the individuals mentioned in the forensic findings related to the Mhluzi intake substation.

“We strongly believe that labeling the forensic report as an irregular expense is utterly irrational. Additionally, it compels FTech to undertake the electrification of the intake substation in Mhluzi. It’s critical that we implement consequence management, and those responsible for this decision must be held accountable,” said DA chief whip Palesa Mobango.

Mobango added that the Auditor-General also flagged issues, including the appointment of contractors who did not meet requirements set out in the Construction Industry Development Act 38 of 2000.

She said DA’s inspections showed that despite the massive investment, the substation remains unconnected to Eskom’s electricity network and is not serving the community. “We are fully aware that Eskom is responsible for electrifying substations and linking them to the grid,” she said.

Mathunyane added that any party or councillor may challenge a council decision in court, but the council is legally obliged to defend resolutions it has made if they disagree with it. “This is why the council has resolved to uphold its stance regarding the findings of the forensic investigation,” he explained.

Interestingly, the EFF — which voted with ANC to reject the report — has remained silent on the latest developments, while the ANC said it would comment only after receiving legal advice.

“As the ANC, we knew what we were doing when we voted against the motion to adopt the report. Unfortunately, we’re unable to share our thoughts at this moment until we receive a legal opinion to ensure we’re guided correctly on this issue,” said Sello Matshoga, the regional secretary of the ANC Nkangala.