KwaDukuza Municipality 'rudderless', calls for Section 154 intervention grows
Image: Facebook
Opposition parties in the embattled KwaDukuza Local Municipality have called on the provincial government to place the municipality under Section 154 as the ANC struggled to replace its fired mayor.
According to a parliamentary document, Section 154 obligates national and provincial governments to strengthen municipal capacity, ensuring that municipalities can manage their affairs, exercise their powers, and fulfil their functions effectively.
This support may take the form of legislative measures, financial assistance, and technical guidance, all aimed at enhancing local governance and ensuring sustainable municipal operations.
The municipality has been without a political head since the resignation of mayor Ali Ngidi and his deputy Njabulo Cele two weeks ago.
Attempts to elect a new mayor failed two weeks ago following an apparent revolt by ANC councilors who were said to be unhappy with the party's decision to bring back two former mayors Sduduzo Gumede and Lindiwe Nhaca as the new mayor and deputy mayor respectively.
The meeting was cancelled at the last minute and the ANC said it was because of Luthuli House's intervention after the mother body reminded the provincial structure about interviews which first had to be conducted by the team of the National Working Committee.
However, sources within the municipality said the meeting was cancelled after the ANC leadership learned that there were 10 councillors who were going to boycott the meeting and this would have given the opposition an opportunity to take over.
ActionSA councillor Halalalisani Ndlovu said his party had already written to KwaZulu-Natal Co-operative Governance and Traditional Affairs' MEC, Reverend Thulasizwe Buthelezi, to send a Section 154 team to take over, especially the financial administration of the municipality.
Ndlovu said that his party's concerns stemmed from the fact that the finance committee has not met for two months because of uncertainty created by the ANC's dismissal of the mayor and his deputy. He stated that there were committee meetings that had to be cancelled because the mayor, as the chairperson, was not there.
Ndlovu further stated that the last committee meeting was held in June, during which the agenda from May was still being considered. Since then, there have been no meetings to address matters for June or July. He said on July 25 — the day on which a meeting was again scheduled - it was postponed without explanation.
'The next meeting, according to the official calendar, is only set for 20 August. This means three consecutive months of committee inaction on key governance, budget and performance issues.
'In terms of Section 154 of the Constitution, I hereby request that your office urgently asses the governance and administrative functioning of the Finance Committee and provides appropriate support to restore its operations.
"Furthermore, in light of the municipality's failure to fulfil its executive obligations, I ask that your department considers whether a Section 139(1)(b) (provincial) intervention may be warranted, should these issues persist unresolved," said Ndlovu.
Weighing in on the matter, DA caucus leader Privi Makhan said the municipality was now a rudderless ship that cannot deliver for the people because the ANC is no longer capable of leading it.
'The DA reiterates our call to all opposition parties, if we are truly serious about rescuing this municipality, we must act together now,' said Makhan.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
an hour ago
- IOL News
DA's Steenhuisen: Expanding GNU and inviting the MK Party and EFF will complicate things
DA leader John Steenhuisen addresses the media in Johannesburg, voicing strong opposition to expanding the Government of National Unity. Image: Supplied/DA Democratic Alliance (DA) leader John Steenhuisen says he does not believe that expanding the Government of National Unity (GNU) and inviting MK Party and EFF will help it move forward, arguing that such a move would make things worse. 'In terms of the expansion of the GNU – and that's also been raised by the last speaker – let me be very clear. We entered into something called the Statement of Intent. It was signed by all parties,' Steenhuisen said. 'The Statement of Intent makes it abundantly clear that if new parties are to be added to the GNU, this has to be done in consultation with the parties currently in the GNU, and such a decision will be based on the sufficient consensus clause within that Statement of Intent,' he added. Steenhuisen made the remarks on Monday in Johannesburg, as the DA unveiled its proposed changes to the Broad-Based Black Economic Empowerment (BEE) Act, the Employment Equity Act, and the Expropriation Act - legislation the party has long criticised as problematic. The DA, which is the largest partner in the GNU, has opposed several key policies introduced by the African National Congress (ANC), which leads the coalition. Tensions between the two parties have persisted since the GNU's formation, with the DA at times threatening to withdraw. However, it has ultimately chosen to remain, claiming its commitment to holding those involved in corruption and nepotism accountable, and to implementing legislation aimed at economic growth and job creation. His comments come after the ANC indicated plans to expand the GNU, with ongoing discussions involving other political parties, including the Jacob Zuma-led uMkhonto weSizwe (MK) party and the Economic Freedom Fighters (EFF). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Last week, IOL News reported that as the ANC intensifies its efforts to broaden the GNU, opposition party ActionSA has said it is not interested in joining the ruling coalition. ActionSA leader Herman Mashaba said he had only heard media reports of the ANC's intentions and that his party had not been approached directly by Luthuli House. The DA and Freedom Front Plus, both GNU members, have strongly opposed any expansion of the coalition. 'I think it's going to complicate things even further. We already have ten parties in the GNU. It's one of the largest coalitions in the world,' Steenhuisen said. 'I think that there should rather be more energy and focus spent on improving relations among the parties within the GNU – particularly on how you consult, manage conflict and establish dispute resolution mechanisms, which to date remain unavailable,' he told the media. 'That is why every time there is a bit of frisson in the coalition, it blows up into a massive storm.' He added that internal mechanisms for open and frank discussions were urgently needed, to avoid repeated breakdowns in communication. 'No, we have not been consulted or spoken to about expanding the GNU, and obviously when that discussion comes, we will engage and express our views. 'But I know as well that these views are also shared by other partners in the GNU, who are concerned about expansion and would rather see improved working relations within the Government of National Unity.' Meanwhile, speaking to IOL News, MK party national spokesperson Nhlamulo Ndhlela said the party was not in discussions with the ANC about joining the GNU. 'We are not in any discussions with the GNU, and we will never sell out our people and join the GNU,' Ndhlela said. 'There's an element of relevance being sought by people who are irrelevant, trying to bring us into their mess. You can't use MK as a mob to reverse or clean up after decisions that were made by selling out – and that's what this is.' Both the MK party and the EFF have previously said they will not join the GNU, which currently includes the DA and Freedom Front Plus. 'We have stated from day one that we can't work with the ANC of Ramaphosa. We won't join the GNU. There are no conditions that will make us join the GNU – because there's no such thing as the GNU,' said Ndhlela. IOL News has reached out to the ANC and EFF for comment, but no response had been received at the time of publication. IOL Politics
The Citizen
an hour ago
- The Citizen
Supreme Court upholds sentence for former ANC MP in R6m fraud
Instead of protecting the fund, the former ANC MP 'colluded with other public officers to defraud the fund for self-benefit'. The Supreme Court of Appeal (SCA) recently rejected former ANC MP Manyaba Rubben Mohlaloga's bid to overturn his 20-year imprisonment for stealing R6 million from a government agricultural empowerment fund. The court dismissed his appeal of his sentence and struck his application for reconsideration of his conviction from the roll. Mohlaloga, who chaired parliament's portfolio committee on agriculture, was found guilty of fraud and money laundering under the Prevention of Organised Crime Act for plundering the Agricultural Broad-Based Black Economic Empowerment (AgriB-BBEE) Fund between 2007 and 2008. ANC MP AgriB-BBEE fraud background Parliament created the AgriB-BBEE programme to provide financial assistance to previously disadvantaged farmers. 'Its objective was to facilitate broad-based black economic empowerment in the agricultural sector,' the court noted. According to the court, the initiative aimed 'to include black South Africans at all levels of agricultural activity and enterprises along the entire agricultural value chain.' The National Department of Agriculture and Land Bank established the fund with R100 million from National Treasury. Applications require assessment according to the AgriB-BBEE Operational Manual, with the National Advisory Panel responsible for approvals or rejections. Crucially, the manual's paragraph 5.5.1 'explicitly provided that politicians, while holding public office and government employees do not qualify and will not be eligible for grants from the Fund.' ALSO READ: Masemola in firing line over multimillion-rand buildings acquisition [VIDEO] Conspiracy takes shape The court found that the fraudulent scheme began when Mohlaloga approached Tjia, head of the Limpopo Youth Commission, proposing that they seek project funding. Mohlaloga later met Tjia and attorney Nkhwashu at his Polokwane residence to discuss 'embarking on a broad-based youth empowerment project to empower, educate and employ the youth'. When acting Land Bank CEO Mohlahlane informed them they qualified for a R3 million grant, the court found their plans immediately shifted. 'Mr Mohlaloga and Mr Tjia immediately changed plans and the idea of a broad-based empowerment programme was abandoned,' Justice Kathree-Setiloane wrote. 'They decided to buy a farm on receipt of the grant.' The transformation was telling. 'It was apparent, from that point on, that they intended to make a profit from the project, and it ceased to be a broad-based empowerment programme,' the judgment states. Circumventing legal barriers When Mohlahlane informed the group about the manual's politician prohibition, Mohlaloga devised a workaround. 'On being informed of this, Mr Mohlaloga instructed Mr Tjia to make the application,' the court found. The deception deepened when Mohlahlane submitted a typed application with a forged signature instead of Tjia's handwritten version. He told fund manager Mosoma 'that the minister was extremely frustrated because there was no progress with the empowerment programme and instructed him to prepare the payment documents'. ALSO READ: Man sentenced for defrauding Amtola Water Board in tender scam Bypassing due diligence The payment authorisation violated every procedural safeguard. 'There was no formal application, no business plan or due diligence performed on the project,' the court found. 'The application was also never considered or approved by the NAP [National Advisory Panel].' When auditors later investigated, officials scrambled to create documentation. 'A paper trail was created, and various documents were falsified in an attempt to mislead the auditors,' Jude of appeal, Fayeeza Kathree-Setiloane noted. 'But for the audit, the transaction would never have been discovered.' Rapid depletion of funds On 1 February 2008, R6 million flowed from the fund to Nkhwashu's law firm trust account. The money disappeared with stunning speed. 'Within a period of three months from date of payment of the R6 million into the DKD attorneys' trust account, an amount of only R22 641.44 remained,' the court found. Mohlaloga extracted substantial personal benefits. He reportedly received R80 000 directly into his personal account, while R866 150 was used to purchase two BMW vehicles registered in his name. According to court records, another R2.8 million went to his family trust in three instalments during April 2008. The court detailed additional personal spending: 'He transferred R10 000 to the account of his wife, bought art for R30 000 and a timeshare for R61 000. He also bought a stationary business for a total of R263 771.' Most tellingly, R2.29 million from his family trust purchased Schuinshoek farm, with the court noting this was done 'as a smoke screen to prevent detection and fool the auditors'. ALSO READ: Hawks arrest second suspect in R1.3m vehicle fraud case No exceptional circumstances found Mohlaloga's reconsideration application claimed 'blatant misapplication of fundamental legal principles' constituted exceptional circumstances warranting review. He argued the case would 'result in an irreparable injustice' and lead to 'a travesty of justice'. Kathree-Setiloane rejected these arguments. 'I am unable to find that exceptional circumstances exist in this case that warrant a reconsideration of the decision refusing leave to appeal,' she wrote. 'The errors which the high court is said to have made ultimately turn on the evaluation of the evidence and findings of fact and law which have been raised before.' Moreover, the court emphasised that exceptional circumstances require 'circumstances which give rise to a probability of grave individual injustice, or the administration of justice might be brought into disrepute if no reconsideration occurs.' Former ANC MP sentence appeal fails Mohlaloga argued his 20-year effective sentence was 'shockingly disproportionate to the convictions of fraud and money laundering.' The court disagreed, noting the Criminal Law Amendment Act prescribes minimum 15-year sentences for fraud exceeding R500,000. While acknowledging mitigating factors like Mohlaloga being a first offender with family responsibilities and university education, Kathree-Setiloane found aggravating circumstances far outweighed these considerations. ALSO READ: Home Affairs fires five more officials linked to fraud and sexual assault Betrayal of public trust The court highlighted Mohlaloga's position of responsibility. 'Mr Mohlaloga played a pivotal role in the commission of the offences while he was an elected member of parliament and Chairperson of the Portfolio Committee on Agriculture,' the judgment states. 'In electing him to parliament, the electorate put their trust in Mr Mohlaloga. He, however, abused that trust by perpetrating the crime of fraud against the Fund which was funded by taxpayers' money,' Kathree-Setiloane said. The judge emphasised the programme's noble purpose. 'AgriB-BBEE was a noble project that was intended to uplift and empower previously disadvantaged and emerging farmers in the agricultural sector to progress to commercial farming.' Instead of protecting the fund, 'he colluded with other public officers to defraud the Fund for self-benefit.' The court found the conspirators 'committed the offences out of pure greed' with 'no evidence that they needed the money to survive.' Unrepentant attitude Mohlaloga's trial demeanour particularly troubled the court. 'Despite being given an opportunity to repay the money by the regional court, Mr Mohlaloga failed to do so,' Justice Kathree-Setiloane observed. 'It is clear from his testimony during the trial that he lacked remorse.' The court quoted his defiant trial testimony: 'I do not know what you mean by Land Bank money, because once the money is approved and given to the beneficiary, it belongs to the beneficiary.' According to Justice Kathree-Setiloane, this attitude reflected his fundamental misunderstanding of the fund's purpose. 'He failed to recognise that the grant was intended to empower disadvantaged people in the agricultural sector, and that by defrauding the fund, he was denying those who most needed its financial assistance,' the court found. ALSO READ: ActionSA lays fraud charges against NW municipal manager Societal impact Kathree-Setiloane emphasised corruption's broader consequences. 'Corruption and white-collar crime in state-owned entities lead to economic decline, job losses, more poverty, and reduced public trust,' she said. 'Unless those convicted of such crimes receive appropriate sentences, public confidence and participation in government institutions would be completely eroded, leading to increased inefficiencies and possible collapse,' the court warned. Final ruling Applying established sentencing principles, considering offence gravity, offender circumstances, and public interest, the court upheld the sentence. 'I am of the view that an effective sentence of 20 years' imprisonment is not shockingly inappropriate,' Kathree-Setiloane concluded. The court noted that 'by the end of April 2008, there was no money left for the project. A total amount of R3 600 000 was paid to Mr Mohlaloga.' Except for the farm purchase funds, 'nothing has been paid back'. The Supreme Court of Appeal ultimately struck Mohlaloga's reconsideration application from the roll and dismissed his sentence appeal, confirming his two-decade imprisonment for the R6 million fraud that robbed resources from South Africa's most vulnerable farmers. READ NEXT: Eskom burns nearly R6 billion on diesel to keep lights on during winter
The Citizen
3 hours ago
- The Citizen
Coalitions and political appointees are hobbling municipalities
Government aims to reform the crumbling municipal sector through merit-based appointments and performance-linked funding. But BLSA warns this could benefit metros at less-resourced municipalities' expense. South Africa's crumbling municipalities – with just 16% receiving clean audits in the past year – are hobbled by coalition governments and political appointees. This is the view of Business Leadership SA (BLSA), in response to the government's White Paper on Local Government, which aims to reverse the staggering decline of municipalities in SA, through merit-based appointments and performance-linked funding. While many initially welcomed coalition governments as a sign of SA's maturing democracy and a fracture of the ANC's grip on key centres of power, the downsides have become all too apparent in the failing metros of Johannesburg and Tshwane. Since the 2021 local government elections, Johannesburg has seen six mayors come and go, and Tshwane three, due to political manoeuvring and motions of no confidence. The situation is even worse in Nelson Mandela Bay, where a decade of political instability has severely crippled service delivery. The number of hung councils – where no party holds an outright majority – surged from 27 in 2016 to 70 in 2021, an increase of 159%. Read more The ANC's fall from grace and the danger in its decline ALSO READ: Mashatile: How national government is aiming to reform local municipalities The once-dominant ANC saw its share of the vote slip below 50% in 2021, forcing coalitions in major metros like Johannesburg, Tshwane and Ekurhuleni. This led to shifting political alliances, frequent changes in leadership, budget delays and service delivery failures. More than 30 of these coalitions are unstable, according to the South African Local Government Association (Salga), which means most of them seem to be functioning. But where the majority of South Africa's population live – in metros such as Joburg and Tshwane – this is clearly not the case. BLSA says just 53% of senior municipal officials meet competency standards. Further, municipalities spent R1.47 billion on consultants in the 2024 financial year – with little improvement. Political appointees, often selected for loyalty rather than merit, disrupt continuity and prioritise party agendas over public needs. ALSO READ: Salga looking for ideas to help municipalities despite solution already offered Unforeseen risks The reform agenda announced by government is a positive move, but not without its risks, BLSA adds. The White Paper represents a move away from blanket allocation models, towards incentivising reform based on ethical, performance-based governance. One of the tools used to achieve this is the recently announced Metro Trading Services Incentive Component (MTSIC), a performance-based grant system aimed at improving accountability and operational efficiency in the eight metros. At stake is R54 billion in incentives over six years, partly funded by the World Bank, for metros that meet governance, operational, and financial benchmarks. The problem is this approach could create a two-tier system of local governance: benefiting already-functional metros while excluding underperforming municipalities. The focus on making this type of funding available to metros, risks sidelining the 205 local and 44 district municipalities – many of which suffer from structural disadvantages. Most of them fall below the bankability threshold, preventing them from accessing blended or private financing without external support. ALSO READ: Communities feel excluded as municipalities push ahead with IDP budgets Declining own-revenue collection, coupled with debts owed to Eskom and water boards, means precious little is spent on infrastructure. Municipalities owe Eskom close to R100 billion and R22 billion to the nine water boards. BLSA warns that bypassing municipalities through direct wheeling arrangements – where electricity can be delivered from a power plant in one part of the country to a consumer in another part – could further erode municipal revenues and destabilise their already-fragile finances. Many municipalities are largely reliant on national transfers, a marked increase since 1998. 'This reflects declining own-revenue collection and deteriorating financial discipline. The situation is exacerbated by mounting debts to service providers such as Eskom and water boards, which further limit the ability of municipalities to invest in infrastructure or implement reform,' says BLSA. 'The differentiated funding model proposed by the White Paper is promising, but it lacks clarity on how it will be implemented equitably across varied municipal contexts. Without clear eligibility criteria, safeguards, and support frameworks, the model risks deepening existing fiscal disparities.' ALSO READ: Almost 40 municipalities facing sanctions from Treasury over mismanagement Proposed reforms Public-private partnerships (PPPs) will allow under-resourced municipalities to tap larger pools of private capital and improve delivery of services such as water and electricity. Enforcement of existing laws remains a weakness and oversight bodies like National Treasury and the Public Service Commission are often under-resourced and lack the enforcement powers required to drive change. 'This impairs the credibility of conditional grants and allows underperformance to persist without consequence,' says BLSA. Other proposed reforms, such as the Municipal Structures Amendment Bill – which introduces mechanisms for managing coalition governments in hung councils – should make it more difficult to engineer no-confidence votes to get rid of sitting mayors. The expanded President's Coordinating Council and the proposed Municipal Member of Executive Council must be subject to parliamentary oversight to ensure they achieve their objectives, says BLSA. Government also plans to establish a dedicated South African Police Services (SAPS) unit to combat corruption in local government. ALSO READ: Are municipalities failing — or are residents just unable to pay? Why many are turning to off-grid living Operation Vulindlela is expected to play a central role in coordinating reform implementation. 'While this is a positive development, its effectiveness will depend on whether it can transition from a policy facilitator to an outcome enabler,' says BLSA. BLSA calls for stronger conditionalities on grants, digital procurement systems, and independent audits to curb corruption and enforce accountability. The reform timeline, with full rollout delayed until March 2026, risks losing momentum. Without quick wins in delivery of services such as water and electricity, reform fatigue could set in. BLSA advocates a phased approach with short-term milestones, like digital dashboards to track performance and regular community dialogues to rebuild trust. This article was republished from Moneyweb. Read the original here.
