Mpumalanga businessman left ruined by government contract dispute and legal battle
A food supplier in Mpumalanga spent several years supplying the health and education departments before relations deteriorated.
A South African businessman, Alex Masilela, is rebuilding his life after a tumultuous relationship with the Mpumalanga government. Initially awarded lucrative food supply contracts for the education department and seven hospitals, Masilela's business crumbled as he faced legal battles costing him millions. His company, Ngiyasebenza Food and Projects, once supplied food to over 8,000 children and was set to continue doing so when the global health crisis intervened.
However, he was excluded from the education and health departments, with Masilela claiming he was never paid for his services. In February 2021, Masilela's legal team initiated court proceedings, and the Mpumalanga government disputed his claims, alleging violations of procurement regulations and that the contracts were void from the start.
Masilela's losses, including unpaid invoices and expenses, amount to R15 million, not including the loss of his SM Palace restaurant. Deputy Small Business Development Minister Jane Sithole intervened on his behalf, urging the government to address the issue urgently. The government and Sithole are currently negotiating a resolution to Masilela's unpaid claims.
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