ActionSA has laid criminal charges against Rustenburg municipal manager Ashmar Khuduge over fraud, corruption, and financial misconduct.
This includes R10.4-million in unauthorised legal fees and R335.2-million in irregular expenditure linked to unlawful tender processes.
Thamzile Nkaeleng and Ofentse Kobe, the secretary of ActionSA in the North West, filed the charges under the direction of party president Herman Mashaba.
Kobe said Khuduge failed in his duties relating to his role as the municipality’s accounting officer.
Unauthorised expenditure
He said Khuduge has violated the Municipal Finance Management Act (MFMA), including failure to prevent unauthorised and irregular expenditure, abuse of procurement rules, and misuse of legal provisions to bypass oversight mechanisms.
“The municipal manager failed to take reasonable steps to prevent unauthorised expenditure amounting to R10.4-million in legal fees, as flagged in paragraphs 28 and 67 of the auditor-general’s report and note 53 of the audited annual financial statements for the 2024/2025 financial year,” said Kobe.
He stated that irregular expenditure of R335-million was recorded in the 2023/2024 annual financial statements and was mostly linked to tenders awarded without competitive bidding, in violation of Section 217 of the constitution and municipal supply chain regulations.
“There was also failure to comply with Regulation 36 of the municipal supply chain regulations relating to the procurement of goods and services through deviations from prescribed supply chain processes, as reflected in note 57 of the consolidated financials for 2023/24,” said Kobe.
Failure to probe allegations
Khuduge is also accused of misusing Section 114 of the MFMA by appointing a service provider for a contract exceeding 36 months without meeting the legal requirements set out in Section 33.
“We are further concerned that the municipality has failed to investigate these serious allegations, as required by Section 171(4) of the MFMA.
“This inaction fosters a culture of impunity, causes significant reputational harm, and undermines public confidence in local governance.
“We are further concerned that, despite attempts to bring this matter before the council, the speaker [of the council] has obstructed efforts to hold the administration accountable.
“ActionSA will file an urgent complaint with the public protector to ensure that allegations of financial misconduct, fraud, and corruption are not swept under the carpet,” said Kobe.
