The Forum of Limpopo Entrepreneurs (Fole) has slammed Public Works, Roads and Infrastructure MEC Ernest Rachoene’s decision to appeal a high court order reinstating Roads Agency Limpopo (RAL) CEO Gabriel Maluleke and the agency’s board. 

Siviko Mabunda, a Fole secretary, said the move proved that Rachoene and Premier Phophi Ramathuba wanted to “milk RAL through the back door”. 

Last week, the Limpopo Division of the High Court in Polokwane ordered Rachoene to reinstate Maluleke and the RAL board following their illegal removal two months ago. 

The ruling, delivered by Judge Marisa Naude-Odendaal on Tuesday, October 8th, set aside Rachoene’s decision to dissolve the board on 31 July 2024. 

He had appointed former ANC Member of Parliament Moses Tseli as the “Interim Accounting Authority”, who later suspended Maluleke on 30 August 2024. The court order also nullified Rachuene’s decision to replace the RAL board with a one-man board under Tseli, who was given the authority to oversee operations pending the appointment of the new board.

“You can’t fire the CEO without evidence and go and hire the Accounting Officer outside RAL. That’s nonsense. Now, we have been proven otherwise because the CEO won the case. They wanted to remove him without evidence because he couldn’t dance to their tune of corruption. Why should they appeal? They are wasting government money. Their appeal means they are hellbent on doing corruption at RAL. If the court has reinstated this person, why are they appealing? They lost the case. They don’t have evidence of corruption against that man. It’s just a rumour that he was a puppy of [RAL Chairperson Matome] Ralebipi,” Mabunda said. 

“How can you fire the CEO without evidence of corruption? You go outside and hire an accounting authority because you are aware that the CEO would be an accounting officer, and you don’t want him. That’s the only reason. They wanted to do corruption behind closed doors. They knew the CEO would be the accounting officer when they fired the board, and he would not dance to their tune. They wanted to remove him so he wouldn’t be the accounting authority. The likes of Phophi and Rachuene wanted to eat,” Mabunda said. 

Mabunda said Fole had been vindicated because he had publicly warned the department that Rachoene’s decisions were illegal, including Tseli’s external appointment as the interim accounting officer. 

According to Section 49 of the Public Finance Management Act (PFMA) of 1999, as amended in 2017, if the public entity has “a board or other controlling body, that board or controlling body is the accounting authority for that public entity”. 

If it “does not have a controlling body, the chief executive officer or the person in charge of the public entity is the accounting authority for that public entity unless specific legislation applicable to that public entity designates another person as the accounting authority”. 

The PFMA adds that “under exceptional circumstances”, the relevant Treasury Department “may approve or instruct that another functionary of a public entity must be the accounting authority for that public entity”.  

The Limpopo Department of Public Works announced its intention to appeal against the reinstatement of the RAL board and Mauleke in a media statement released on October 9, 2024.

“Immediately after the court outcome the department consulted with its legal representatives for advice, and after the consultation, an advice obtained from Senior Counsel, the Department decided to appeal against the order of the High Court with immediate effect. The Department confirms that the application for leave to appeal, which immediately suspended the order of the Court was filed on 9 October 2024, together with a notice of request for written reasons from the presiding Judge,” the department said in a statement.  

Moreover, Mabunda claimed the dissolution of the previous RAL Board, chaired by businessman Matome Ralebipi, was part of Rachoene’s and Ramathuba’s plot to raise funds before the next provincial ANC conference in 2026.

Ramathuba is campaigning to succeed her predecessor Stan Mathabatha as Limpopo ANC chairperson. President Cyril Ramaphosa appointed her as Limpopo’s first female premier after the 2024 general elections.  

Mabunda claimed Rachoene and Ramathuba sought to use RAL’s multimillion-rand tenders to bankroll the premier’s political ambitions.  

“Rachoene and Phophi are hellbent on milking RAL through the back door. Obviously, Phophi wants to be the chairperson, and John Mpe [Polokwane mayor] wants to be in the top five. All they are doing now is raising money to bankroll their campaign. Just because Rachoene is the chairperson of the ANC Youth League and ran Phophi’s campaign, he was rewarded with the MEC position. Phophi tells him what to do. That thing of dissolving the RAL board was told by her. She told him to fire the CEO,” Mabunda maintained. 

Emmanuel Mongwe, Rachoene’s spokesperson, said Mabunda’s allegations against the MEC were baseless. They included claims that the disbandment of the RAL board was part of Rachoene and Ramathuba’s plot to “milk RAL” and raise funds for her campaign to become provincial ANC chairperson.

“The allegations raised by FOLE are unsubstantiated and the matter of the Board of Directors of Roads Agency Limpopo and the suspended CEO is currently in court and is sub judice. The court process should be allowed to take place without improper interference and innuendoes,” Mongwe said. 

Ramathuba spokesperson Thilivhali Muavha said the premier had nothing to do with the dissolution of the RAL board and the CEO’s suspension. 

“The establishment of the Road Agency Limpopo through the RAL Act 3 of 2001 makes provision for the Member of the Executive Council for Public Works, Roads and Infrastructure to take charge and oversee the operations of the Board as a shareholder representative. Nowhere is the Premier involved in the running of affairs of the board and therefore any insinuation of her involvement is far-fetched and unwarranted,” said Muavha. 

“The Premier has appointed 10 MECs, each fully capable of managing their respective departments. The MECs conduct their duties independently, without any interference.”

Muavha did not respond to Mabunda’s allegations that Ramathuba instructed Rachoene to disband the RAL board and suspend Maluleke because she sought to use the agency as a cash cow and raise funds for her ANC leadership ambitions.

Attempts to contact Polokwane Mayor John Mpe proved unsuccessful. 

Ralebipi, the reinstated RAL board chairperson, could not be reached for comment. However, he told Sunday World last month that Rachoene’s decision to dissolve the board was personal and politically motivated.

He said the board he presided over was forced to resign because of his marriage with Justice and Constitutional Development Minister Thembi Nkadimeng. 

After the May general elections, the former Polokwane mayor and Ramathuba were contenders for the Limpopo premiership. 

“The new MEC is not fond of me because he sees me as the husband of his political principal’s rival. Remember, he decided to disband the board I chaired despite evidential proof in the form of a clean audit during my tenure. It is a pity that when I was crucified, innocent people could not escape the axe. That is the nature of politics,” Ralebipi told Sunday World. 

Maluleke, the suspended RAL CEO, declined to comment.