Cooperative Governance on closing out contracts with CWP implementing agents

The Department of Cooperative Governance (DCoG) has noted with concern false narrative covered by IOL publication dated 26 June 2025.

The article with a misleading headline, “CoGTA defies order to pay over R9m” – Contempt of Court. As CoGTA, we respect our courts as arbiters in all legal matters. To this effect, we would not want to address matters relating to the decision of our courts on a media platform and we would allow the legal process to take its course.

Insika served as an implementing agent in the CWP, and their agreement concluded in September of last year. The department is currently in the process of closing out all contracts with the implementing agents, including Insika. This process involves extensive engagements with the implementing agents as they exit the CWP sites. It is the intention of all parties to part amicably.

The article published in IOL on this matter is misleading and purports to set out that CoGTA had refused to pay Insika Foundation. The department fully intends to compensate the implementing agents for their services. However, it should be noted that the closeout process with Insika has not yet been finalised.

The department would like to set the record straight that it has not refused to pay Insika, however wanted to ensure that all money spending is done in line with the directives of the Public Finance Management Act (PFMA).

The judgement that has been referred to in the article had ordered Insika to make an application in the same court for mandamus for the immediate payment of an invoice where Insika was claiming for site establishment and project management fees in the amount of R9 291 633.42. Insika has failed to make the application. It is, therefore, regrettable that someone decided to share lies with the media concerning this matter.

The department is engaging with Insika to find an amicable solution to the impasse and believes that any disputes that may arise between the department and Insika will be resolved. The department is committed to finding a solution that will be agreeable to both parties.

For CoGTA, this is more than just money. It is about the understanding that public funds should be used in a manner that will show prudence and compliance with our policies and the law.

Enquiries:
Mr. Legadima Leso
COGTA Head of Communications
Cell: +27 (66) 479 9904

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