The North West High Court has upheld an order barring Quiet Kgatla from performing his duties as Madibeng municipal manager or accounting officer due to a financial risk posed by disputed transactions worth over R21.9m. The municipality, already under provincial intervention, had approached the court urgently after Kgatla attempted to make two large transactions without required concurrence. The court's decision follows a dispute over Kgatla's attempts to process significant payments unilaterally, raising concerns about the municipality's financial management.
According to the court, Kgatla tried to make two transactions, one worth R1.9m and another worth R20m, without the required concurrence from the provincial executive representative (PER). When flagged, Kgatla was supposed to undergo a disciplinary process while on precautionary suspension, which he resisted. Acting judge M Wessels found that Kgatla's actions created a risk of conflicting instructions to the municipality's bankers and staff during a period of financial vulnerability.
The municipality has been under provincial financial intervention since 2021 due to a persistent financial crisis. A financial recovery plan was developed in 2023, and revised terms of reference were published in the North West Provincial Gazette in June 2026. The PER had deactivated Kgatla's access to the municipal bank account, leading Kgatla to demand the urgent reactivation of his banking access in a letter written in his capacity as "accounting officer/municipal manager".
In his letter, Kgatla stated that continued restriction of his banking profile may materially disrupt essential municipal operations. However, the court found that this explanation was contradicted by his actions and previous letters, indicating that he was directly involved in transactions that allegedly bypassed the PER's required concurrence. The court rejected Kgatla's argument that he only had an approval function and was not directly involved in transactions.
Kgatla challenged the suspension, arguing that the PER did not have the legal power to suspend him and that the municipality had failed to disclose important information when approaching the court. However, the court rejected this interpretation, citing Section 139(5)(c) and the provincial executive's role in implementation. The court ordered Kgatla not to enter municipal premises or contact municipal staff, councillors, service providers, and bankers without the PER's written authorisation.
The court also ordered Kgatla to return municipal property, including laptops, access cards, and records. An acting municipal manager was authorised to take over while the disciplinary process continues. Kgatla remains suspended on full pay and benefits. The judge found that the prejudice to Kgatla is limited, and weighing that against the risk to the municipality's governance and finances if the interdict is refused, the prejudice is lesser.
The Madibeng municipality's financial crisis and Kgatla's actions have raised concerns about the municipality's financial management and governance. The court's decision aims to mitigate the risk to the municipality's finances and ensure that essential municipal operations continue without disruption. The disciplinary process against Kgatla will continue, and an acting municipal manager will oversee the municipality's operations in the meantime.
Key points
- North West High Court upholds order barring Quiet Kgatla from office due to financial risk posed by disputed transactions.
- Disputed transactions worth over R21.9m raised concerns about Madibeng municipality's financial management and governance.
- Kgatla remains suspended on full pay and benefits pending the outcome of the disciplinary process.
