The Department of Social Development has been plunged into chaos and political drama after it emerged that Director-General Peter Netshipale’s five-year contract was suddenly cut to just one year.
This is to fix a contract blunder that overlooked the Cabinet decision to appoint Netshipale on a 12-month contract. The contract was set to expire in March 2026.
Minister of Public Service and Administration, Mzamo Buthelezi, had written a letter stating that Cabinet had approved a five-year term.
Five year contract instead of one year
“At its meeting of 26 March 2025, Cabinet concurred with the appointment of Mr FP Netshipale to the post mentioned above. With an all-inclusive remuneration package of R2 259 984 per annum for a term of five (5) years,” reads Buthelezi’s letter.
The letter, signed on April 14, had raised concerns over administrative failures and irregularities in Netshipale’s appointment.
An internal memorandum seen by Sunday World reveals that the letter is now under investigation for its authenticity. This raises even more questions about how the glaring contradiction occurred.
DPSA spokesperson Moses Mushi declined to clarify the situation. He only said that the department cannot comment on matters that involve a Cabinet decision.
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The confusion has fuelled outrage and political pressure, with opposition MPs demanding answers. DA MP Alexandra Abrahams questioned how a 64-year-old official could be offered a five-year contract that would extend beyond the standard retirement age.
In its defence, the department insisted that the retirement age does not apply to employees appointed on contract. It cited section 8(3) of the Public Service Act, arguing that the law permits appointments beyond normal retirement age if they are approved and deemed necessary.
“The Public Service Act allows for the appointment of Heads of Departments on a fixed-term contract beyond the normal retirement age. Provided that such appointment is approved by the relevant authorities. And that it is in line with the strategic and operational needs of the department,” reads the department’s written reply.
The department further claimed that Cabinet had “considered and approved” Netshipale’s appointment. This was in line with the Act to ensure continued stability in the department.
However, the issue exploded into a full-blown scandal. Minister of Social Development Sisisi Tolashe was hauled before Parliament’s Portfolio Committee on Social Development to explain the mess.
Clerical error wrote five years, not one
“On 26 March 2025, the Minister of Public Service and Administration Inkosi Buthelezi tabled before the Cabinet the appointment of Mr Fhumulani Peter Netshipale to the vacant post of the department of Social Development,” said Tolashe.
“After deliberations, Cabinet granted approval for the appointment of Mr Netshipale as the director general for a period of one year. I then received a letter dated April 14, 2015 from Inkosi Buthelezi confirming the Cabinet decision on the appointment of Mr Netshipale.
“However, the letter erroneously stated the term of appointment is five years instead of one-year approval granted by the cabinet. This was just a clerical error, not an intentional act. And it has been resolved without prejudice to the company’s authority,” said Tolashe.
She further claimed that she did not attempt to overrule the Cabinet decision. And she added that it is the highest decision-making body.
Abrahams said Tolashe should be called back to the Portfolio Committee on Social Development. She needs to answer why she has still kept Ngwako Kgatla as her advisor. This is despite reports that they are having a romantic relationship.
Tolashe is also facing backlash over the South African Social Security Agency (Sassa) failures.
“It is deeply concerning that a department entrusted with such resources is in such disarray. Leaving those most dependent on its services to suffer,” said Abrahams.
