A bombshell report by the Mining Affected Communities United in Action (Macua) has uncovered massive fraud and financial mismanagement in South Africa’s mining sector, revealing that over R284 million allocated for Social and Labour Plan (SLP) projects has gone unaccounted for.
The findings are contained in a newly released investigative audit titled “Crumbs Capture,” launched on Thursday, which details a three-year probe into SLP expenditures by mining companies across 11 communities in provinces including North West, KwaZulu-Natal, Mpumalanga, Limpopo, Free State, and Northern Cape.
R284 Million Vanished from Community Funds
According to the report, mining companies collectively reported SLP commitments worth R376.25 million, yet only R92.25 million could be verified through delivered infrastructure or services. This leaves R284 million missing—funds that were supposed to uplift mining-affected communities through development programs.
“This is not merely underperformance. It is developmental theft,” Macua declared. “A system of Crumbs Capture in which even the legally required entitlements of the poor are systematically looted.”
A Pattern of Ghost Projects and Falsified Reports
Using participatory research, on-site inspections, and community testimonies, Macua identified systemic issues including:
- Ghost projects that exist only on paper
- Falsified delivery reports to inflate progress
- Overpriced tenders with no accountability
- Elite capture involving politically connected actors
Macua stated that this represents not a gap in implementation, but the intentional looting of funds legally mandated for the socio-economic benefit of mining communities.
Shocking Disparities in Profit vs. Delivery
The report also highlights a staggering imbalance in corporate priorities. The audited mining companies reportedly generated R218.8 billion in turnover and R72.23 billion in profit over five years. Yet, only 0.13% of those profits were spent on actual, verified community development.
“If mining companies can steal legally mandated development funds without consequence, while the State looks away and criminalises resistance, then the constitutional project has failed the people it was meant to uplift,” Macua said.
Government and Industry Response
The Department of Mineral Resources and Petroleum Resources (DMPR), which is responsible for enforcing SLP compliance, has yet to respond formally to the report. A department spokesperson said they were still preparing a response at the time of publication.
Chairperson of Parliament’s Portfolio Committee on Minerals and Petroleum Resources, Mikateko Mahlaule, acknowledged the seriousness of the allegations, saying the committee plans to hear from both Macua and the department during the current financial year.
Meanwhile, the Minerals Council South Africa has requested a copy of the report and a meeting with Macua. The Council noted that in 2023 alone, the mining industry spent an estimated R4.9 billion on social investment, although Macua disputes these claims as sector-wide misrepresentations.
A Nationwide Scandal?
When extrapolated nationally, Macua estimates that up to R25 billion in SLP-related funds may have been misappropriated across the South African mining sector.
“This is not neglect. It is a coordinated system of elite capture and state-sanctioned impunity,” the report concludes.
