Limpopo African National Congress (ANC) Secretary Reuben Madazhe faces a corruption case after he accepted a luxury car bought by a private company that later won a R15 million state contract. 

In January 2023, Chobedi Construction, owned by businessman Dr Moloto Mokwele, purchased the R1.6 million BMW X5 in which Madadzhe cruises.

Madadzhe is the administrative head of South Africa’s governing party, the ANC, in the country’s northern region of Limpopo. The vehicle was later registered under Limpopo ANC, but Chobedi Construction denied that it had donated the car to the governing party in breach of the Political Party Funding Act. 

Madadzhe’s silver-blue BMW X5 car was also fitted with illegal blue lights, sparking allegations that the authorities were treating him differently and allowing him to break the law. 

A year later, in 2024, the Department of Limpopo Public Works, Roads and Infrastructure awarded Chobedi Construction a tender for over R15 million to construct the new Bashadi Ditlou Traditional offices. 

Ernest Tonny Rachoene, former chairperson of the Limpopo ANC Youth League (ANCYL), leads the Limpopo Department of Public Works, Roads, and Infrastructure. This triggered allegations that the multi-million Bashadi Ditlou Traditional Offices contract rewarded Mokwele for buying a car for Madadzhe.

The Limpopo ANC and Madadzhe have dismissed corruption and fraud allegations against them.

A bank proof of payment shows that Chobedi Construction paid R1,6 736 13.80 cash into the account of the car dealership, Legacy Auto, on January 14, 2023. The car later found its way to the Limpopo ANC and for Madadzhe’s comfort.

Mokwele, Madadzhe and ANC Limpopo spokesperson Jimmy Machaka have admitted that Chobedi Construction bought the BMW X5 that Madadzhe is driving. 

However, they denied Mokwele donated the car to the ANC in exchange for tenders and Madadzhe’s political influence. 

On Saturday, March 22, EFF provincial Chairperson Lawrance Mapoulo opened a case of corruption and fraud against Madadzhe at the Polokwane Police Station.  

Speaking to the African Times News, Mapoulo said they had given the police enough evidence to investigate Madadhze’s alleged fraudulent and corrupt activities. Madadhze allegedly received a high-value vehicle as a donation from a private company in exchange for millions in tenders. 

“We have opened a corruption and fraud cases against Madadhze, for failing to disclose the BMW X5 that is said to be a gift from a private Construction company (Chobedi) which has been rewarded with a R15 million tender”. 

“We have given the police some evidence such as communication and transactions between the two parties, to institute their investigations,” Mapoulo said. 

Earlier Saturday morning, African Times sent detailed questions to Machaka and Mokwele about the circumstances surrounding the BMW X5.

This included how the vehicle was acquired, who bought it, how it ended up in Madadzhe’s possession, whether it was a donation to Madadzhe or the ANC, whether the donation was declared to the Independent Electoral Commission of South Africa (IEC) as required by the country’s party funding laws, and whether Madadzhe traded political influence for the luxury car. 

Machaka confirmed that Chobedi Construction bought the car but denied it was donated to the ANC. He said the ANC asked the company to procure the official vehicle for Madadzhe’s use. Machaka claimed the ANC refunded Chobedi Construction but declined to share the proof of payment. 

“The Vehicle was purchased during the period on January 2023, and the service provider was repaid during the same period. The ANC did not Refund the company, instead, the ANC Paid For the Contracted service – Hence it is our views and remains our view that the ANC Bought the car itself and the car was never bought by the service provider,” Machaka said. 

When asked why the Limpopo ANC opted to use Chobedi Construction to buy Madadzhe’s car, and whether all of the party’s vehicles had been purchased through third parties, Machaka replied: “

“The ANC reserves every [right] to transact in any manner of its Choice – The Third Party was used Given the Nature of the Transaction and the High Value of the amount Involved. Not all cars were purchased in the similar manner – This one Is unique Because of the High value of the amount involved.”

Machaka denied allegations that Madadzhe sold political influence to Mokwele and that the businessman donated the luxury car to the ANC in exchange for lucrative tenders.

He said the governing party had nothing to do with government procurement processes. 

“The ANC has nothing to do With Tenders scored by the Company and any other companies, tender Processes Are subjected to Bidding and Competition and therefore any company which Is awarded tenders , it Is our presumptions That it was out of a Transparent and fair Processes.”

“The ANC Is not and will never sell Political influence Or tender to Services providers – the ANC Is time to time doing business With multiple service providers and does not influence any tender  processes soon there After, all tender Processes Are Free From Political influence and interference and awarded strictly in accordance With SCM Policies and Regulations,” Machaka added.

The provincial spokesperson said the ANC had no obligation to declare the car to the IEC because it was “not a donation”.

“It Is vehemently denied That the Vehicle was a donation – the aquisition costs of the Vehicle was Paid to the service provider and therefore not a donation. The ANC Had no legal obligation to declare to the ANC Because it was not a donation.”

Mokwele also denied that he donated the BMW X5 to the ANC. 

“We quoted them R1 970 500.00 for the service of purchasing the car on their behalf and they paid on the either on the 10th or 11 of January 2023, can’t recall exact date,” Mokwele said via WhatsApp.

However, Mokwele failed to produce documentary evidence for the transaction and proof of payment.

He did not explain how the Limpopo ANC chose his company to procure the BMW X5 or whether buying and selling cars was part of Chobedi Construction’s services.  

Mokwele said he could not source the proof of payment from the ANC because African Times sent him the WhatsApp questions on a Saturday. 

The businessman promised to share the evidence – including procurements records and communication between his company and the ANC – on Monday, March 24. 

When we followed up, the Chobedi Construction owner requested written questions again via email. Mokwele then failed to respond as promised.

In a statement released on Friday, Mokwele claimed one of his companies, Regen Investments and Projects CC, procured the vehicle as a service rendered to the Limpopo ANC for a fee. 

However, he used its sister company, Chobedi Construction, to pay for the car because Regen Investments and Projects had “exceeded our limits”.

“In January 2023, Regen Investments and Projects was appointed as a service provider to procure a BMW X5 on behalf of the ANC. We received an advance payment from ANC to procure the said vehicle. When payment was to be effected to pay Legacy Auto, it was brought to our attention that we had exceeded our limit, as a result I used our sister company (i.e. Chobedi Construction) to make payment on behalf of Regen Investments and Projects which was the appointed company,” Mokwele said.

“It did not bother me since ultimately the payment from ANC was processed to a company within my group. It was internally corrected by transferring the amount from Regen Investment to Chobedi Construction in order to correct the accounting error. As a company and myself we have not donated any vehicle to the ANC, we have been paid for the service rendered on behalf of the ANC by the ANC.”

Madadzhe has vehemently denied corruption allegations and any other wrongdoing.

In a radio interview on Capricorn FM last week, he admitted Chobedi Construction procured the car but denied it was for him as an individual.

He provided evidence that the BMW X5 was registered under the Limpopo ANC.

“I have got nothing to hide. I will never come here and tell people lies. The car is bought somewhere in January 2023, registered under ANC Limpopo. The proxy name is Tom Shadung, who is our fleet manager. It’s a vehicle of the ANC. If I can be redeployed or dissolved tomorrow, the vehicle will remain the property of the ANC,” Madadzhe said. 

“I do have my own car, which BMW finances every month; it’s not a small car like this one. Mine is M50. If you understand vehicles, you will know an M50. When I came to the office of provincial secretary I came with my blue M50.”

So I am not bought any car. This vehicle is bought by the ANC for the work of the provincial secretary’s office. It’s not the car of Reuben Madadzhe,” he added.