Limpopo roads chief booted out over wasteful expenditure

Road Agency Limpopo [RAL] chief executive has been fired for overcommitting road projects to the tune of R1.3 billion in the province.

Gabriel Maluleke was fired last week for appointing eight companies to build roads when the department had no budget. He went over the budget by R1.3 billion.

The agency said this caused it to incur irregular, fruitless and wasteful expenditure amounting to R6.9 billion. Limpopo has a total of 21000 road networks. About 7000 of them are either paved or tarred, while 13000 are gravel.

Financial misconduct

The termination of the employment of Maluleke follows his suspension on 30 August after facing charges related to dishonesty, financial misconduct, negligence and the contravention of some certain sections of the Public Finance Management Act [PFMA].

Between the 2021/24 financial years, RAL appointed companies to construct roads despite the fact that the agency did not have the money to pay. Maluleke would however not go down without a fight.

On 25 September, he filed an urgent application in the Polokwane High Court, challenging the legality of the board’s dissolution and his suspension. He said his suspension violated the Limpopo Province Roads Agency Proprietary Limited and Provincial Roads Act.

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RAL board

Maluleke added that the decision to dissolve the RAL board on 31 July was made without notice to board members.

He also argued that this was in direct conflict with Section 17 of the Companies Act, which mandates that a director must receive notice of any meeting and resolution considering their removal, and must be given the opportunity to make representations before the resolution is passed.

Although won the case, the department appealed the matter. The matter is now before the Supreme Court of Appeal. Yesterday, MEC for the Limpopo department of public works, roads and infrastructure, Ernest Rachoene welcomed Maluleke’s dismissal.

Taking action

He said it was crucial that the agency take action and apply consequence management, while ensuring that public funds were accounted for at all material times.

“We have committed to the people of Limpopo that the government of the seventh administration will deliver services to improve the economy and the lives of our people.

“I therefore support all efforts towards focusing on the mandate that the people gave us and avoid any form of distractions from anyone who seeks to derail the goal of the government to deliver services,” said Rachoene.

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