Dihlabeng Local Municipality, governing the Free State towns of Bethlehem, Clarens, and Paul Roux, became the site of one of the most brazen examples of infrastructure sabotage in South Africa. Water infrastructure was deliberately damaged to create emergencies that required urgent repair contracts — which were then awarded to politically connected companies at inflated prices.

The former Municipal Manager was arrested on charges related to the sabotage and the tender fraud that followed. The modus operandi was simple but devastating: municipal insiders or their agents damaged water pipes, pump stations, or treatment systems. The resulting water outages created an "emergency" that justified bypassing normal procurement processes. Connected contractors were awarded emergency repair contracts at prices far above market rates. The cycle repeated.

Clarens, one of the Free State's premier tourist destinations, regularly found itself without water — an embarrassment for a town that relies on visitors. Bethlehem, the district's commercial centre, similarly experienced regular and prolonged water outages. In both towns, businesses suffered, property values declined, and residents were forced to purchase water or rely on tanker deliveries.

The arrest of the former Municipal Manager was a significant step, but the broader network of saboteurs, corrupt contractors, and political protectors remained largely intact. The pattern of sabotage-for-profit has been documented across multiple South African municipalities, particularly in water infrastructure, suggesting a national syndicate operating across provinces.