KZN municipality pays out R1.4m settlement to ex-municipal manager

The cash-strapped and politically unstable Nongoma local municipality in northern KwaZulu-Natal has been forced to part with R1.4-million to pay a former municipal manager it fired unfairly.

This development comes after Mthandeni Zungu, the former municipal manager, took the matter to the South African Local Government Association bargaining council in Durban to contest the dismissal.

Sensing defeat, the municipality chose to negotiate with Zungu and the issue was resolved after learning that nearly all of the nation’s labour laws had been broken when the then-NFP-ANC-EFF coalition hurried the process and fired him in 2024.

Police arrested Zungu for alleged corruption, leading to his firing, and the case remains in court.

Later, Zungu was joined in the dock by former mayor Clifford Ndabandaba of the NFP, Babongile Sithole of the ANC, and Sabelo Nkosi of the EFF, who were also implicated in the corruption.

Ironically, the decision to fire Zungu without following the proper procedures was spearheaded by Ndabandaba, Sithole, and Nkosi.

According to a June 17 bargaining council document obtained by Sunday World, the municipality was required to pay the full amount due at once rather than in installments.

Zungu received his payment last week, as confirmed by sources within the municipality, following an SA Revenue Service (SARS) deduction.

“That money has already been paid out, and Mr Zungu is said to be planning to come back to work in the municipality again,” one source told Sunday World.

Inquiry procedurally flawed

The municipality has paid out Zungu and resolved the issue, according to Mpumelelo Mnguni, the acting municipal manager.

“Mr M Zungu was dismissed after an inquiry that was procedurally flawed. On the other hand, the allegations were substantive. A mutual agreement was reached between the respondent and the application,” Mnguni said.

“The mutual settlement agreement had timelines that the parties had to observe. It is common knowledge that the municipality was epitomised by political instability, which led to the late approval of the budget and IDP [integrated development plan].

“Consequently, a tax directive was sought from SARS, and I am not at liberty to disclose the net income received by the applicant. The council has noted the mutual settlement agreement.

“It is submitted that the arrangement was for a once-off payment. Approval would have a prerequisite in the case of a condonation; the applicant was to be reinstated.”

Mnguni added that the appointment of Mhlanga Incorporated to represent the council was flawed, highlighting that the municipality has since terminated the services of the law firm.

“Mhlanga Inc’s was flawed and in ultra vires of SCM [supply chain management] processes; hence his appointment to represent the municipality was terminated and a new legal firm was appointed.”

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