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Charges against Mangaung mayor over multi-billion IPTN mismanagement

───   KEKELETSO MOSEBETSI 10:30 Sat, 15 Mar 2025

Charges against Mangaung mayor over multi-billion IPTN mismanagement | News Article
Councillor Dirk Kotze filed a criminal case against the Mangaung mayor and his mayoral committee. Photo supplied

The DA in the Free State has taken legal action against Mangaung Metro’s Mayor and his mayoral committee, accusing them of failing to report criminal activities linked to the troubled Integrated Public Transport Network (IPTN).

This comes after mounting allegations of mismanagement, financial irregularities, and delays that have cost taxpayers over R2 billion since the project’s inception in 2016.

The IPTN was finally launched in 2024 after a series of delays. However, from the outset, the project has been mired in controversy, with opposition parties questioning the ability of the Mangaung Metro to manage such a significant undertaking. 

The bus system, which is designed to improve public transport in the area, has faced persistent challenges ranging from irregular expenditure to missed deadlines.

The DA filed a criminal case against the Mangaung Mayor and Mayoral Committee over IPTN. Photo supplied

The IPTN features three ticket sales onboard the Huaweng buses: a R100 multi-trip ticket, a R20 return ticket, and a R10 single trip. Despite the introduction of the system, the DA argues that its financial mismanagement has been a major drain on public resources.

Friday (14/3), DA councillor Dirk Kotze filed charges at the Park Road Police Station in Bloemfontein, accusing Mayor Gregory Nthatisi and his committee of failing to act on criminal activities linked to the project. Kotze’s complaint claims that this neglect has led to substantial financial losses for taxpayers.


He said the DA had submitted formal questions to Nthatisi on 24 September 2024, seeking clarity on a KPMG forensic report into the project. However, Nthatisi’s response was insufficient, violating the requirement under Rule 38 of the Mangaung Metro Council’s Standing Rules and Orders, which mandates written responses. 

He said the KPMG report was eventually referred to the Hawks, South Africa’s elite investigative unit, which recommended legal action against implicated officials and contractors.

Report recommended disciplinary hearings

Kotze further said on 7 November 2024, that Nthatisi presented findings from both KPMG and ABACUS Financial Crime Advisory Services, underscoring the need for accountability within the IPTN project. 

Among the key recommendations were disciplinary hearings for officials found responsible for the mismanagement of funds, as well as referring the case to the Hawks for a specialised investigation. Furthermore, legal steps were advised to recover the financial losses.

Kotze criticised Nthatisi’s handling of the situation, stating that a full report on the forensic investigation was never submitted to the National Prosecuting Authority (NPA) or the Hawks within the stipulated 90 days, due to legal reviews within the Metro’s legal department.

The IPTN project has faced scrutiny from multiple parties, including the then Minister of Transport Fikile Mbalula, who requested a forensic investigation into the project in April 2022. 

The Auditor-General of South Africa (AGSA) later reported a material irregularity on 28 February 2023, relating to a payment of nearly R3 million for an extension of time in Phase 1C of the Chief Moroka Link Route. This payment was made despite no contractual obligation and violated the Municipal Finance Management Act (MFMA), leading to even more financial losses.

Kotze said AGSA’s report recommended a thorough investigation into non-compliance, financial misconduct, and potential disciplinary action against those responsible. However, the delays in taking action have raised concerns about the effectiveness of the metro’s leadership in handling the matter.

He said the IPTN has experienced a series of missed deadlines, with at least six key project milestones not being met. As a result, taxpayers have been burdened with a staggering cost of over R2 billion. In addition to the delays, feasibility studies have added millions to the overall cost of the project since 2011. He said the lack of progress and the growing financial burden have prompted increasing calls for accountability, with the DA pressing for more transparency and swift action.

“The DA has the right to open a case but in the recent council meeting, there was a discussion and approach to be undertaken on the IPTN report,” Mangaung Metro spokesperson, Qondile Khedama, responded.

OFM News/Kekeletso Mosebetsi cg

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