Latest news with #Maluti-a-PhofungLocalMunicipality
IOL News
4 days ago
- Business
- IOL News
Withdrawal of CFO secondment for Free State official amid Gupta-linked fraud case
A senior Free State provincial government official has had her secondment as the acting chief financial officer of the troubled Maluti-a-Phofung Local Municipality withdrawn as she is facing fraud charges relating to a R25 million contract awarded to the Gupta-linked Nulane Investments by the province's Agriculture Department. Image: Twitter / @SAPoliceService The secondment of a senior Free State provincial government official among the accused in the R25 million fraud case involving Gupta-linked Nulane Investments as Maluti-a-Phofung Local Municipality acting chief financial officer (CFO) has been withdrawn. Free State Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements MEC Saki Mokoena had initially seconded the department's deputy director-general responsible for its specialised support, advice, and intervention unit Seipati Silvia Dhlamini. Earlier this month, Mokoena seconded Dhlamini as the municipality has been without a CFO for months after the contract of Matholase Mazinyo expired in March and was not renewed. Free State Cogta and Human Settlements Department spokesperson, Zimasa Mbewu, said Mokoena has withdrawn the secondment of Dhlamini, and Thuso Ronald Marumo, formerly CFO of the Moqhaka Local Municipality in Kroonstad, has been seconded to be Maluti-A-Phofung acting CFO. 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. 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Advertisement Next Stay Close ✕ Ad loading Dhlamini is accused number three in the Nulane matter and was the CFO of the provincial Agriculture Department when the company was awarded the R25m contract to conduct due diligence and feasibility studies into the R334m Vrede Diary Farm Project, part of the broader Mohoma Mobung Programme, run by Indian company Estina on behalf of the department. She has been charged with unlawfully and intentionally, and with common purpose, committing fraud. In April 2023, the Free State High Court withdrew charges against Dhlamini and her co-accused, but last month, the Supreme Court of Appeal ordered they be retried for the same offences they were acquitted of as if they had not previously been arraigned, tried, and acquitted but provided that a different judge presides over the trial. Dhlamini is charged with businessman Iqbal Sharma and his company Nulane Investments, former heads of the Free State Agriculture Department, Peter Thabethe and Limakatso Moorosi, Ronica Ragavan, who represented the fugitive Gupta family's Islandsite Investments, and Dinesh Patel, who is Sharma's brother-in-law and a Nulane Investments representative. During a council meeting in April, assets manager Tsietsi Moremi was appointed acting CFO for a period of three months or until a new permanent CFO was appointed, whichever came first. However, the following month, the council rescinded its resolution and delegated Malekula Melato, the controversial mayor of the troubled municipality, to request Mokoena to second a suitable person to act in the position until a suitable candidate has been appointed. Even before the rescission of Moremi's temporary appointment, in April, Maluti-a-Phofung Municipal Manager Advocate Motsoahae Mofokeng then informed staff in a directive that all the powers of the CFO were recalled and now in his office. 'This is informed by the fact that certain due diligence processes have to be carried out before (the) letter of appointment is dispatched. 'All managers in the finance department should thus report directly to the municipal manager's office forthwith until the said acting CFO receives an appointment letter,' Mofokeng wrote on April 4. In correspondence addressed to Melato dated July 10, Mokoena said he was only in a position to grant the request for a suitably skilled, competent, and qualified candidate in terms of Municipal System Amendment Act 03 of 2022, on such conditions as prescribed, to act in the advertised position until such time as a suitable candidate has been appointed. Mokoena set out a number of conditions including a process plan with timelines on filling of the vacant post of CFO and a provision that all additional cost associated with the secondment such as compensation of the seconded official, an allowance and compensation while on secondment for subsistence and travel etc. are borne by the municipality. Additionally, the secondment must be by agreement, which must stipulate the duration and party responsible for costs. 'The agreement must further include terms of reference, which outline that a person seconded must account to the municipal manager, report in writing at least once a month to the relevant seconding authority with regard to the key performance areas relevant to the position together with the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible,' demanded Mokoena. He said he was seconding Dhlamini and requested Melato to engage Speaker Mandlenkosi Dlamini in order to convene a council meeting on the seconded candidate to allow council to consider the appointment of the seconded candidate and table the conditions for the position of CFO. Mokoena also asked the municipality to forward a signed council resolution in terms of Municipal System Amendment Act appointing the seconded candidates to act in the relevant position after the secondment. Melato was also asked to provide regular progress reports in writing to the relevant seconding authority with regard to the filling of the post and the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible. Mofokeng did not respond to requests for comment.
IOL News
17-07-2025
- Politics
- IOL News
Portfolio committee to investigate bribery and audit discrepancies in Maluti-a-Phofung Municipality
The Portfolio Committee on Cooperative Governance and Traditional Affairs is set to demand answers from the Maluti-a-Phofung Local Municipality after allegations of bribery of councillors to skip meetings emerged. Image: Karen Sandison / Independent Media A parliamentary oversight committee will visit the troubled Maluti-a-Phofung Local Municipality to demand answers on a number of concerns, including alleged R5,000 bribery of councillors not to attend meetings and eight consecutive disclaimer audit opinions. The National Assembly's Portfolio Committee on Cooperative Governance and Traditional Affairs, chaired by Dr Zweli Mkhize, is expected to descend on the province for two days next week, and the struggling municipality based in Harrismith in the Free State has indicated that it will answer questions raised by MPs. On June 30, Mkhize wrote to Maluti-a-Phofung's controversial Mayor, Malekula Melato, and Free State Cooperative Governance and Traditional Affairs MEC Saki Mokoena, informing them about its plans to conduct an oversight visit in the municipality to gather information and ensure accountability. Among the matters identified by the portfolio committee requiring forensic investigations are the 'bribing of councillors to the value of R5,000 each to prevent council sittings from forming a quorum' and R5 million spent on the procurement of uniforms while the council was on recess. 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 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. Next Stay Close ✕ In addition, the committee has asked the municipality to explain how it paid for 45 transformers when only less than a quarter were delivered, as well as asphalt and road marking paint, paid for but not delivered. According to Mkhize's letter, Maluti-a-Phofung allegedly paid double the R6m bill to a security company in February and March this year, and Melato has been asked to apprise the portfolio committee on the allegation. The committee is also seeking answers on the eight consecutive disclaimer audit opinions by the Auditor-General South Africa (AGSA) and the AGSA's inability to determine the municipality's reported achievements. 'For example, there was one indicator that related to the much-needed upgrading of six water pump stations. 'The municipality reported that the six water pump stations had been upgraded but could not provide evidence of the achievement,' Mkhize explained. The committee said, based on site visits, the AGSA team confirmed that the municipality did not adequately maintain four of these pump stations, which had totally collapsed and had not been operational for several years. During the oversight visit, Maluti-a-Phofung is expected to provide reasons for the irregularities or transgressions and state the consequence management it exercised against the transgressors in line with relevant legislation and supply specific names and actions taken. The portfolio committee also wants details of the corrective steps taken to rectify the transgressions identified by the AGSA in the 2023/24 financial year. Additionally, the municipality must provide future action it intends to take to prevent recurrence, with target dates and the accounting platforms where the corrections will be monitored, as well as the anticipated actions to be considered should the preventative actions or targets be missed. The municipality's spokesperson, Thabo Khessah, said they were ready to provide the portfolio committee with the answers it requires.
