On Now
Weekends 20:00 - 23:59
Saturday Nights OFM
Show Background
NEXT: N/A N/A with N/A
Listen Live Streams

Central SA

Mangaung Metro dismiss allegations of inflated prices

───   KEKELETSO MOSEBETSI 11:51 Sat, 30 Aug 2025

Mangaung Metro dismiss allegations of inflated prices  | News Article
The metro had allegedly overpaid for several goods and services. Photo: OFM News

The Mangaung Metro has strongly refuted reports claiming it inflated prices for goods and services by as much as 1500% in a bid to benefit businesses with links to the ANC.

This comes after a report by News24 raised concerns over alleged financial mismanagement within the ailing metro. The publication report, which focused on the municipal council’s supply chain expenditure for the fiscal year ending June, suggested the metro had overpaid for several goods and services. 

It was alleged the metro paid up to ten times more than the market value for certain items. Among the expenses cited were payments linked to vanity projects, which the publication claimed had little to no relevance to service delivery. 

These included campaigns such as "Back to School" initiatives, transporting people to memorial services and funerals, and organising events for Mandela Day and Heritage Day.

In the report, the council’s expenditure on non-essential projects raised eyebrows, particularly because of their disconnect with the core functions of a local government. The claims included payments made for various public events, including children's Christmas parties, transport for funerals, and sponsorships for rugby and soccer matches. 

These expenditures were described as vanity projects that could have diverted funds from crucial public services.

One of the reports referenced an expenditure of R157,700 to transport individuals to the funeral of Luzuko Ntlabezo, a local official gunned down in October 2024. The funeral took place in the Eastern Cape.

The report also highlighted an amount of R727,000 paid for services rendered during the metro’s two-day Investment Summit held in February. However, the description of these services, according to the News24 investigation, was not provided.

The report also named several business figures with alleged ties to the ANC who reportedly benefitted from these inflated contracts, including Free State businessman Ben Moseme and Thato Lekgetho, a well-known ANC supporter based in Bloemfontein. 

The accusations suggested these individuals may have received lucrative deals due to their political connections. In response to the report, Mangaung’s spokesperson Qondile Khedama dismissed the allegations as “malicious”.

OFM News dg

@ 2025 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.