Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa disclosed that 32 investigations were conducted across seven provinces in South Africa, with Mpumalanga's response outstanding. The investigations were initiated by MECs for Local Government after instances of maladministration, fraud, corruption, or other serious malpractice occurred in various municipalities. This information was provided in response to parliamentary questions from DA MP Cathy Labuschagne.
The Municipal Systems Act empowers the MEC responsible for local government to investigate when a municipality cannot fulfil a statutory obligation or when maladministration, fraud, corruption, or other serious malpractice has occurred. Hlabisa's department received responses from eight of the nine provinces, with Mpumalanga not having responded by the reporting date. The minister stated that the information did not constitute a complete national list of all the investigations conducted.
Gauteng had four municipalities under investigation, including the City of Johannesburg, Sedibeng, Rand West, and Merafong. The Eastern Cape had the highest number of municipalities investigated, with seven cases involving Inxuba Yethemba, Matatiele, Dr AB Xuma, Alfred Nzo District, Enoch Mgijima, Mhlontlo, and Sakhisizwe. The Western Cape and KwaZulu-Natal each had four municipalities investigated, while the Free State and North West recorded five investigations each.
The consequences of the investigations ranged from dismissals, contract terminations, suspensions, warnings, and recovery of municipal funds to recommendations for disciplinary proceedings and referrals to the SAPS, the Directorate for Priority Crime Investigation, and the Special Investigating Unit. Hlabisa stated that a number of the reported matters remain under investigation, subject to disciplinary proceedings, pending before courts, or under consideration by the relevant MEC or Municipal Council.
In some municipalities, investigations identified possible contraventions of the Municipal Finance Management Act and the Prevention and Combating of Corrupt Activities Act. For instance, the investigation in Kannaland Municipality recommended referring the findings to the SAPS to investigate possible financial misconduct, fraud, or corruption involving implicated current and former officials.
The investigation into the City of Johannesburg and Merafong was referred to the Special Investigating Unit for further processing. In Rand West Municipality, the former CFO has been suspended and had the employment contract terminated. The ministry also reported that no criminal action was reported in some municipalities, while a criminal case was opened in Endumeni following the investigations.
Hlabisa's responses showed that some investigations are ongoing, and their outcomes are pending. The outstanding response from Mpumalanga will be incorporated once received through the appropriate parliamentary process. The minister added that the current status of the investigations should not be construed as a final finding of criminal or disciplinary liability.
Key points
- 32 municipalities across seven provinces in South Africa were investigated under Section 106 for maladministration, fraud, and corruption.
- The investigations resulted in various consequences, including dismissals, suspensions, and referrals to law enforcement agencies.
- Some investigations are ongoing, with their outcomes pending.
