Fraud-accused Matlosana CFO implicated in yet another questionable payment

Issued by Cllr Johannes le Grange – DA Caucus Leader: City of Matlosana Local Municipality
10 Apr 2024 in Press Statements

Note to Broadcasters: Please find attached soundbites in English and Afrikaans by Cllr Johannes le Grange.

The DA in the City of Matlosana is not surprised to learn that the Chief Financial Officer (CFO), Mercy Phetla, has allegedly been implicated in yet another fraudulent payment of R3 million following her arrest for fraud and corruption by the Hawks earlier this year.

We called for her suspension following the arrest, however, the ANC Caucus in Matlosana abused its majority and shielded her from suspension. This has now led to a slew of irregularities. CFO Phetla has now become a law unto herself.

CFO Phetla, on 05 January 2024, allegedly approved an electrical equipment purchase requisition of almost R3 million to Variegated PTY Ltd without the approval or knowledge of the Municipal Manager, Lesego Seametso. The Municipal Finance Management Act’s (MFMA) stipulated threshold for transactions above R200 000 requires the final approval of the Municipal Manager.

The CFO replaced the then-storekeeper with one of her accomplices, MJ Tsimane, to allegedly assist with the facilitation of this payment. The R3 million purchase went through five days after Mr Tsimane’s appointment, who signed the delivery documents of the electrical equipment which was never received.

CFO Phetla is allegedly implicated in fraudulent payments to GMHM Construction and Projects and for receiving a Volkswagen Amarok Bakkie worth R1,4 million from the company and failed to declare the benefit which led to her arrest. The matter is before the court.

The DA recently raised its concerns about this suspicious payment during a Portfolio Committee meeting, but the ANC continued to protect CFO Phetla.

The DA will through our Caucus Leader in the North West Legislature, Freddy Sonakile MPL, write to the MEC of CoGHSTA, Nono Maloyi, requesting his urgent intervention in ensuring that the CFO is suspended immediately.

Residents of Matlosana cannot survive another term of ANC mismanagement and corruption. On 29 May this year, residents have an opportunity to kick out the corrupt ANC and vote in the DA, the only party with a proven track record of fighting corruption and delivering good governance.