A Daily Maverick investigation reveals how CMS Water Engineering, a black-owned firm, allegedly engaged in bribery and diverted lucrative contracts to a white-owned company led by Rudolf Schoeman Jnr. This scheme contributed to failed water projects across North West province, exacerbating infrastructure woes. Employees and insiders describe a trail of cash payments, gifts to officials, and unfulfilled tenders worth hundreds of millions.
CMS Water Engineering began in 1984 in Orkney, North West, as a small repair business founded by Rudolf Schoeman Snr, known as Dolf. By 2000, it had eight employees handling modest municipal contracts. In 2012, Dolf's son, Rudolf Schoeman Jnr, a 30-year-old lawyer, joined, bringing ambition and volatility. A long-time employee described him as 'a good businessman' who thought 'out of the box,' though prone to outbursts like screaming about his unwatched car.
By 2014, the company's turnover reached R68-million annually. Insiders allege bribery started small—R3,000 or R5,000 payments to officials for favors—escalating to 10% of payment certificates, with one employee transporting up to R3-million in cash. Gifts included a two-night Sun City stay for a JB Marks Local Municipality official, ahead of a R23-million pump station contract, and R3,000 in bricks for 'Oom David' Dikoko, non-executive chairman of Sedibeng Water.
Dikoko, who knew Dolf, told investigators he repaid Rudolf in cash for the bricks, calling it 'not a gift' and nothing to declare. Under his oversight, CMS secured nine Sedibeng contracts worth R396-million over six years. In 2015, a R65-million Wolmaransstad wastewater plant repair involved an alleged 10% bribe demand; CMS refused but paid R5.1-million to a municipality-chosen firm for undelivered pumps.
In 2018, CMS allegedly renovated a Ngaka Modiri Molema District Municipality official's house, leading to R209-million contracts for Zeerust and Sannieshof plants in 2019. That year, CMS also won a R291-million Rooiwal refurbishment with Edwin Sodi, linked to a 2023 cholera outbreak killing 47.
To expand, Rudolf launched CMS Global Solutions in 2017, 50% owned with Elias 'Eric' du Plessis. Using CMS Water's BEE status and Grade 8 CIDB rating, it won tenders then passed over R600-million in projects—84% of R208-million received—to Global, per investigator Jan Brink's report. Projects included Rooigrond (R62-million, 2017) and Bospoort (R85-million, 2018), many unfinished. Luxuries followed: a R3-million Cessna plane and R1.7-million yacht.
Du Plessis denied fronting, claiming Global was a subcontractor for civils work, estimating 50% of value flowed to his firm. Employees blamed the shift for CMS Water's decline, with 2019 revenue at R146-million but shrinking profits. The Bospoort upgrade became a disaster, mirroring Rooiwal's failures amid allegations of tender-rigging and court battles.