Dept wants traditional leader to pay back R11m

The traditional leader accused of fraud and corruption after misappropriating R11m meant to uplift unemployed youth in North West claims he is not aware the department of higher education is trying to recoup the money from his company. 

Instead, Chief Edward Moefi Mabalane said his plea to the department was to resuscitate the project in Mabaalstad, saying he wants to “complete what we started”.  

The R11m from the department’s National Skills Fund (NSF) was meant to provide training in agricultural skills to more than 1,000 unemployed young people in Moses Kotane municipality.

The students were reportedly supposed to be taught how to run a poultry farm, but the project was halted.

Mabalane’s company Medirwe Investments was appointed as project manager. 

In a question and answer in parliament recently, the minister of higher education and training Dr Nobuhle Nkabane said the department was in the process of handing over Mabalane’s company to the office of the state attorney to recoup the money.  

Nkabane said the fund had been engaging with Medirwe from October 2024 to February to return the funds. She said the company had requested an extension until February 21, and now that the period had lapsed,  the matter will be handed over to the state attorney.

“The NSF has instructed the skills development provider to reimburse NSF funds amounting to R11.1m which were not accounted for by Medirwe Investments. Alternatively, submit a payment plan from Medirwe and/or the commencement of the learnership programme,” said Nkabane.

She said the company, through their legal firm, had not yet provided proof of returning funds.

Nkabane said a process is also underway for the company to be restricted from doing business with the NSF. 

However, Mabalane said on Thursday: “I’m not aware [the department is trying to recoup money]. I don’t have any correspondence of that nature. I cannot respond to something that I do not know. They have to prove how much it is [that must be paid back] because, right now, I don’t have anything that says I must pay back because there is money left to complete the project.”

Nkabane said a criminal case was opened against Mabalane and documentation was handed over to the Hawks in December. 

Mabalane confirmed a case of fraud and corruption was opened against him last year, but said: “Since then, I have not received any calls from any law enforcement agency. The case was opened by my former business partner, if there is wrongdoing, the law will take its course.” 

Hawks spokesperson Brig Thandi Mbambo said she was still waiting for information on the case and had not responded at the time of going to print.

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