THABA Chweu municipality in Mpumalanga cannot account for R3,5 million it had been paid in a property transaction.

In 2007 Xstrata SA, which operates a chrome processing plant outside Mashishing (Lydenburg), entered into negotiations to purchase 95ha of land from the municipality.

On December 12 a deed of sale was signed and R2,37million paid in lieu of the assessment value of the land.

An additional amount to have council erect a precast wall along the border between the land and the new municipal landfill site was deposited into the municipality's bank account on June 30 2008 and October 21 2008.

Since then no transfer has taken place, nor has the wall been erected.

Municipal manager Billy Ralebepe said the matter has been tabled at several council meetings but the transfer of the property to Xstrata remains outstanding.

"We are investigating what happened here," he said.

The DA yesterday called on provincial cooperate governance MEC Madala Masuku to initiate a forensic investigation into this transaction.

Thaba Chweu is already being investigated by the SAPS's directorate for priority crime investigations (the Hawks) over R7million in prepaid electricity sales that have not been accounted for.

The municipality has been placed under administration twice in five years.