Several vehicles belonging to the Makhado Local Municipality were seized by the Louis Trichardt Sheriff’s office on Tuesday after the municipality had allegedly failed to pay a service provider.

This action follows a High Court ruling in favour of the controversial security company Landmark Security and Supply Services (Pty) Ltd.

The company won the bid to provide security services to the municipality in 2017*. It submitted a bid for R207.15 million in June 2020 for the provision of three years of services, but did not get the tender. It is understood that the Makhado Municipality still owes the company money, which led to litigation.

Landmark Security and Supply Services has two founding directors, Thilivhali Mahada and Harold Mphatheleni Muswobi, who retired from the company in 2016.

Muswobi is no stranger to controversy. In 2014, his company, Harold Muswobi Construction, was awarded a R500,000 tender (which later escalated to nearly R700,000) to repair the municipal swimming pool in Louis Trichardt. The project was plagued by allegations of poor workmanship and delays. Despite repeated assurances over the years, the pool remains closed.

More recently, Muswobi made headlines for failing to complete the Vhuilafuri Stadium in Madabani village. The R37 million tender to build the sports facility was awarded to his company, Moswobi Building Construction and Property Developers, in 2022.

The name Landmark Security and Supply Services also appeared in parliament in September this year. A member of the EFF in the National Assembly, Sinawo Tambo, asked the Minister of Finance for a list of private security companies that have failed to pay workers’ pension-fund contributions. Landmark Security’s name appears on the Financial Sector Conduct Authority (FSCA)’s list of defaulters.

The Limpopo Division of the High Court, sitting in Polokwane, was not asked to rule on the reputation of service providers and in October this year the court ordered the Makhado Municipality to pay Landmark Security R2,458,499.76 in outstanding payments for services rendered. The amount includes interest.

Following this High Court order, the Sheriff was granted a warrant of execution to seize several of the municipality’s movable assets. The attached properties include a TLB and two bakkies.

The seizure of these municipal assets has left opposition parties outraged as it hampers service delivery.

DA councillor in the Makhado Council Glenda Furumela highlighted the devastating impact of the asset seizure on communities relying on road-maintenance services.

“This attachment of assets will once again prevent much-needed service delivery in Makhado,” Furumela said. She blamed mismanagement and corruption for the municipality’s failure to pay contractors, which led to the seizure.

The opposition party has called for urgent intervention from the provincial and national departments of Co-operative Governance and Traditional Affairs to address the municipality’s inability to meet its service-delivery mandate. Furumela stressed that the financial crisis must be resolved to prevent further harm to residents.

EFF councillor Wiseman Ramalwa expressed concern but said he was not surprised by the municipality’s latest legal troubles. He added that the EFF would call for a special council meeting to ensure the executive committee (Exco) takes steps to resolve the problems amicably.

At the time of our going to press, the Makhado Municipality’s spokesperson, Mpho Rathando, said he was waiting for the municipal manager to sign off on a response to media queries regarding the matter. However, Rathando confirmed that the municipality intends to appeal the High Court’s ruling.

* The original article stated that Landmark Security won the bid for provision of security services in 2020. This was, however, in 2017, for a period of three years. Mr Harold Muswobi also resigned from the company in 2016. We apologise for the error.