Macpherson suspends EPWP funds to Matjhabeng municipality.

By Lehlohonolo Lehana.

The Public Works Minister, Dean Macpherson, has suspended Expanded Public Works Programme (EPWP) funding to Matjhabeng Local Municipality pending a full investigation over allegations of abuse.

Fullview learnt the abuse in Matjhabeng, is linked to several African National Congress (ANC) individuals, who are receiving inflated salaries far exceeding the programme’s guidelines.

Those individuals are earning over R30,000 per month, far above the EPWP stipend, while ordinary workers and unemployed youth struggle.

These salaries, under EPWP department code 0690, are more than ten times the average stipend (typically R2,900 to R5,000 per month) and violate the programme’s rules for temporary, skills-based jobs prioritising vulnerable groups like youth, women, and people with disabilities.

Municipal insiders described this as a “salary parachute for loyal comrades” under Executive Mayor Thanduxolo Khalipha’s administration, preventing job access for thousands of unemployed young people in areas like Welkom, Odendaalsrus, and Thabong.

In a statement, Macpherson expressed deep concern over the misuse of the EPWP.  

He highlighted that the programme is meant to offer short-term, skills-based work opportunities to unemployed South Africans, not to serve as a tool for political patronage or personal gain. 

“The EPWP is an essential lifeline for many in communities across the country, including in Matjhabeng, and it would therefore be wholly unacceptable if any politician or official is found to have used the programme for personal benefit, added the minister.

During a parliamentary oversight visit, committees confronted Khalipha over the scandal, questioning salary discrepancies and bloated staffing. Khalipha requested time to investigate and report back, citing prior disagreements with regulations.

The Matjhabeng case is part of wider concerns about the EPWP, launched in 2004 as one of South Africa’s largest public employment programmes to tackle unemployment through labour-intensive projects like road maintenance, sanitation, and community work.  

Macpherson has emphasised the need for reform, noting that allegations like those in Matjhabeng reinforce the urgency to eliminate corruption and political interference. 

He vows to improve transparency in appointments, partner with the private sector for better skills transfer, and ensure the programme serves as a stepping stone to permanent jobs rather than a long-term dependency.

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