ANC leadership in a media briefing photo by Dimakatso Modipa
The African National Congress (ANC), Greater Tshwane region and its Caucus in the Capital City today raises grave and urgent concerns regarding the conduct of the City’s Chief Finance Officer (CFO) and the subsequent failure of governance structures to act, placing the municipality at severe financial and
operational risk.
Our concerns are detailed, documented, and point to a pattern of behaviour that undermines the Municipal Finance Management Act (MFMA), good governance, and the service delivery mandate of the
coalition-led administration.
1.Failure to Submit Annual Financial Statements & Flouting of the MFMA
In the 2023/24 Financial Year, the CFO failed to submit the Annual Financial Statements (AFS) on time, a contravention explicitly flagged by the Auditor-General.
This failure is a direct breach of the MFMA.
We are aware that the City Manager attempted to table a report to council on this matter, but consensus from the
coalition parties was not reached.
We suspect the Mayoral Committee is circumspect, fearing blame from the opposition for “targeting officials.”
The City Manager must, without further delay, take this report to council.
The current audit outcomes hinge on the CFO’s leadership, yet documents continue to be submitted late to the AG, jeopardizing the entire process.
2.A History of Unexplained Wealth and Unjustifiable Demands
A council submission by Councillor Lex Middleburg of the Republican Party previously objected to the CFO’s appointment, citing revelations from the Johannesburg High Court during his divorce proceedings.
His ex-wife demanded a monthly spousal allowance of R250,000, listing assets worth over R68 million.
This CFO has a history of amassing unexplained wealth and demanding unsubstantiated salary increases.
His presence is a clear risk, exposing the municipality to reputational damage and potential litigation from his past and future dealings.
The City Manager promised a report on questions posed to the CFO and a lifestyle audit, but this has vanished into thin air.
3.Ballooning Unauthorized, Irregular, Wasteful, and Fruitless Expenditure (UIFW)
The CFO’s tenure has seen a ballooning of UIFW.
His leadership is directly linked to this unsustainable financial leakage, eroding public funds meant for service delivery.
4.Cancellation and Manipulation of Critical Tenders
•Road and Transport: Tenders were cancelled without explanation, leading directly to poor grant performance.
•Security Tender: This tender has contributed to irregular spending and has been inexplicably postponed for a full year.
While the coalition is viewed as protecting the current tender, we reveal that the hindrance originates from the CFO’s office.
•Toilets Tender: The supplier tender was cancelled and extended for a year without a full report to the Mayoral Committee.
We have information that the planned new appointments involve 10 companies handpicked by the CFO from his close proxies.
The ANC will not fold its arms while the Supply Chain Management department fails under the CFO’s leadership.
5.Unauthorized Movement of Funds and Bizarre Security Arrangements
Departments are being forced to deviate from planned projects due to the Finance Department’s poor performance, risking funds being returned to the National Treasury.
Furthermore, the CFO is protected by
unauthorized “bodyguards” who provide static security in the Council building—a arrangement not approved by Council.
Who is the CFO scared of, and has he reported any threat to the SAPS? We demand a full report from the City Manager.
6.Conduct of the Chief of Police and Her Deputy
•The Chief of Police received only a slap on the wrist for failing to explain an unauthorized “donation” and Christmas holiday.
Her deputy received a certificate for training she never attended.
QThe Chief has failed to act against her deputy because she herself escaped proper scrutiny.
•The Chief has illegally reassigned functions of Corporate Services to her favoured deputies, creating operational
anomalies.
•The appointment of 200 metro police trainees is marred by malfeasance and favouritism, with qualified candidates overlooked.
•The Chief of Police maintains an escort detail larger than that of the Premier of Gauteng.
We demand the risk assessment that justifies this extravagant use of resources.
What Must Be Done:
The situation is untenable and deteriorating.
The ANC demands that the City Manager, as the head of administration, immediately tables a report to Council recommending the precautionary suspension of the CFO.
A full, independent forensic investigation must be instituted into all allegations of misconduct,
maladministration, UIFW, and tender manipulation.
The City Manager must also provide urgent reports on the promised lifestyle audit, the unauthorized security detail, and the conduct of the Metro Police leadership.
Failure to act decisively will confirm that this the City Manager prioritizes protecting compromised individuals over the financial health and security of the Capital City and its residents.
The ANC will use all available council mechanisms and public platforms to ensure accountability is restored.
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