A faction of ANC councillors continues to obstruct efforts to initiate a comprehensive investigation into the conduct of corruption-accused City of Matlosana CFO Mercy Phetla, and the ANC top brass in North West are scrambling for a resolution to save face.
Notably, Sunday World understands that the provincial ANC boss Nono Maloyi and the secretary, Louis Diremelo, have received briefings on the dispute, and consequently, a meeting of the ANC troika and regional officials in the Dr Kenneth Kaunda region resolved on Wednesday night that the council must sit soon and consider the matter.
The sitting is scheduled for this coming Wednesday. During a special council sitting last Thursday, March 13, the meeting noted the report of a joint ad hoc committee comprising municipal public accounts committee (MPAC) and audit committee members, which recommended that Phetla face disciplinary steps.
But when the DA and other opposition proposed that council take a resolution to empower the municipal manager to act against Phetla, who is out on bail after two separate arrests by the Hawks, the ANC councillors pushed back and voted against the motion.
According to Strydom, “She is being politically protected by the ANC to avoid a full investigation.”
Phetla, along with her co-accused, Mmatebesi Sekhejane, the store manager, and Tiisetso Sebetlele, the service provider, was arrested by the Hawks in August last year and later released on bail. Sebetlele owns Variegated; the company allegedly paid R2.9-million to the city. Originally, the deal was to supply electrical material to Matlosana but it was not delivered.
Phetla was again put behind bars last year after allegations that she had been bribed with a R1.4-million car. This bribe was allegedly exchanged for GMHM Construction’s contract. Phetla was arrested with GMHM directors Matshepiso Mothelesane and Nomthandazo Mokasule.
The council passed a slew of resolutions on March 13 to address financial misconduct concerns. In the meeting, it was resolved to proceed with charges against implicated officials and to investigate allegations involving GMHM Construction and Projects 47.
On February 12, the council mandated the joint committee to “conclude interrogation within 14 days” and report back with the names of those allegedly involved in fraudulent activities.
The council also highlighted the urgency of addressing any financial losses, with the MPAC tasked to act “urgently”.
The ad hoc committee met on February 18 and discussed the extensive documentation, including the Maine report, the Mkiva report and the disciplinary board report.
However, it highlighted legal constraints, stating: “The committee has no legal standing in ‘interrogating’ and ‘reporting back to council with names of those responsible for committing fraud and the institution of disciplinary processes.’”
According to the 2014 Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings, the disciplinary board has exclusive authority over financial misconduct.
The council’s reports also revealed “prima facie evidence of serious contraventions” regarding the top 30 suppliers named in the Maine report.
The findings of the Maine report shed light on significant irregularities within a municipality’s paraffin distribution programme intended for indigent recipients. Further scrutiny revealed a staggering financial discrepancy, with an “overpayment of R6 912 598 made to the supplier using the same purchase order number”.
Additionally, the report noted a lack of proper authorisation for transactions.
