The City of Ekurhuleni came under renewed scrutiny on Friday as suspended Human Resources head Linda Gxasheka testified before the Madlanga commission of inquiry about a controversial R3-million tender awarded to a company linked to the wife of controversial businessman Vusimusi “Cat” Matlala.
Gxasheka was taken through documentation relating to a tender for skilled service providers, a contract set to run until 2026.
The commission probed the processes followed in awarding the contract and identifying members of the bid adjudication committee responsible for approving it.
Bid adjudication committee
“The bid adjudication committee pertains to senior management. It comprises the Chief Financial Officer and the Head of Legal. I am not sure if you would find a divisional head in that committee. Their collective responsibility is to ensure the appropriate awarding of the tender,” Gxasheka told the commission.
Evidence leader, Advocate Matthew Chaskalson, confirmed that Buena Vista Learning Academy was named a successful bidder in November 2023.
The company is controlled by Tsakane Baloyi, the wife of Matlala. The commission heard that the business address listed for the company corresponds with the residential address of Baloyi.
Chaskalson highlighted that the sole director of the company was appointed just one week after the bid was advertised publicly.
“That raises concerns, particularly given that this individual is the only director appointed subsequent to the bid’s announcement. There are multiple red flags that warrant further scrutiny,” Chaskalson submitted.
Various irregularities ignored
Between July 23, 2024 and September 5, 2025, payments amounting to approximately R3-million were made to the company.
“Certain payments were rendered in exchange for training services provided. And training services are occasionally funded by SETA. We received grants from them,” Gxasheka explained.
However, further inconsistencies were placed on record.
Chaskalson pointed to the company’s Central Supplier Database (CSD) registration dated July 20, 2023. This appeared to predate the submitted tender.
The company’s B-BBEE certificate was obtained four days before the tender deadline. The director was appointed on June 26, 2023. And the company’s bank account was only opened on July 17, 2023.
Asked whether these circumstances raised concerns, Gxasheka said they did.
“Yes, I agree that these issues raise concerns,” she said.
Business not VAT-registered
It was also alleged that the vendor was not VAT-registered at the time.
Upon reviewing the CSD registration details, the commission heard that the company’s primary listed focus was construction rather than training services.
Allegations were also made that the company’s stated turnover figures were fictitious. This potentially amounted to misrepresentation.
“There appears to have been a misrepresentation in the reported turnover figures,” Chaskalson said.
Further testimony revealed that the company allegedly lacked the necessary training accreditation required for the contract. Chaskalson stated that this would have rendered the bidder ineligible from the outset.
No concerns raised about vendor
“Concerns regarding the subcontracting process and an overall lack of transparency,” Gxasheka concurred.
Under questioning, she acknowledged that irregularities were present in the awarding of the contract.
“The contract should have been identified,” Chaskalson asserted.
“I agree,” Gxasheka replied.
Before the proceedings started, Gxasheka’s legal counsel requested an adjournment of the proceedings until March 4. However, commission chairperson Mbuyiseli Madlanga did not grant the application.
