Farmers Lives Matter SA

Merafong Municipality Faces Allegations of R5 Million Sinkhole Fund Misuse

A heated dispute has erupted between community activists and the Merafong Local Municipality over the alleged misappropriation of R5 million meant for rehabilitating a sinkhole in Carletonville. Activists claim the funds were improperly spent, while the municipality insists it remains accountable to the public.

Claims of Unaccounted Funds

The controversy centers on payments made to JMS Trading and Project, a company contracted to address the sinkhole. Activists allege that despite the municipality declaring the site rehabilitated, the sinkhole remains open, raising suspicions of financial mismanagement.

A senior activist involved in the case revealed that the community had escalated the matter to the Public Protector and the Hawks, South Africa’s Directorate for Priority Crime Investigation.

“What sparked our anger was being told the sinkhole was fixed, only to find it still wide open,” the activist said. “If money is misused on this one, what stops them from looting funds meant for the other 16 sinkholes in the area?”

Opposition Parties Weigh In

Opposition councillors have accused the municipality of reckless financial management, citing previous failures in handling sinkhole-related funds. One councillor disclosed that R120 million had been allocated for five sinkholes in Carletonville and Khutsong, with an additional R60 million later requested from disaster management—yet the work remains incomplete.

“They are reckless with finances,” the councillor stated. “The money was insufficient, and now we’re left with unresolved dangers.”

Legal Action and Delayed Justice

Frustrated by the lack of progress, activists have opened two criminal cases with the South African Police Service (SAPS). However, they express frustration over the slow pace of investigations.

“We went to the police station to check on the case and were told it’s still with the Central Johannesburg Commercial Crime Unit,” an activist said. “We’re glad it’s still active, but justice is moving too slowly.”

Municipality Requests More Time

When approached for comment, the Merafong Municipality requested 48 hours to respond, stating it needed more time to prepare a detailed reply. A council spokesperson emphasized the municipality’s commitment to transparency but did not provide immediate answers.

“We remain committed to engaging with the public and being accountable,” the spokesperson said.

Documents Reveal Early Payments

Newsroom Africa has obtained documents showing that payments to JMS Trading were authorized by the municipality’s Chief Financial Officer (CFO) and Municipal Manager in 2024—before the sinkhole was reportedly fixed. The Hawks are currently investigating the transactions.

What’s Next?

With pressure mounting from activists, opposition parties, and law enforcement, the Merafong Municipality faces growing scrutiny over its financial management. As investigations continue, the community demands answers—and accountability—for the millions meant to keep them safe from sinkholes.