Revelations have surfaced about exorbitant spending on renovations of the Ferdi Meyer Hall, which has resulted in a substantial financial burden for Matjhabeng taxpayers whilst basic services continue to deteriorate across the municipality.
Executive mayor accused of pressuring officials to bypass procurement rules
Vista has received credible information indicating that nearly a million rand was allegedly remitted to the company involved in the renovation in a manner that bypassed required procurement and supply chain processes.
Sources allege that payments were made without proper submissions, relying exclusively on quotations from a single service provider. Senior officials claim that Executive Mayor Thanduxolo Khalipha has applied relentless pressure on managers to authorise deviations to justify the unauthorised payments, with most payments having been made without formal submissions.
The pressure to compel officials to authorise deviations has triggered widespread concern and a significant increase in absenteeism, including sick leave, among both senior and junior staff members. The refusal to authorise deviations was subsequently endorsed by several managers, including the Executive Director of Infrastructure, who has allegedly been subjected to verbal abuse.
Wasteful spending amid crisis
The R6 million allegedly spent on the Economic Summit has outraged residents struggling with deteriorating roads, sewage spills, and uncollected refuse for months. This wasteful expenditure occurs whilst the South African Municipal Workers Union (SAMWU) has protested the shortage of Personal Protective Equipment (PPE) that has persisted for months, further undermining municipal operations.
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Stakeholders, including SAMWU, have questioned the decision to host the fifth summit amid ongoing service delivery failures and implementation of the Financial Recovery Plan. Despite operating under administration, the executive mayor’s event hosting continues unabated, undermining the gravity of the municipality’s financial predicament.
Legal framework violated
The Municipal Finance Management Act (MFMA) strictly regulates when and how municipalities can deviate from standard competitive procurement processes. Deviations are permitted only in exceptional circumstances, such as emergencies or when a single provider is the sole option. These deviations are tightly controlled, require comprehensive justification, and must be reported to the relevant treasury and Auditor-General. Frequent deviations indicate poor planning or governance failures.
Financial recovery plan undermined
Despite full implementation of the Financial Recovery Plan (FRP), municipal management continues to undermine Administrator Makalo Mohale and his team from the provincial and national treasury. Contrary to the FRP team’s directive to halt position advertisements except for the municipal manager role, management proceeded with interview processes for Internal Audit positions and attempted to conduct interviews for the Labour Relations Manager position.
The evidence reveals a blatant disregard for the FRP, highlighting municipal leadership’s apparent determination to continue irregular spending practices despite operating under provincial administration.
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Expenditure on imbizos continues to burden ratepayers, whilst excessive spending on media advertising—a practice the executive mayor pledged to halt upon assuming office—has escalated dramatically. Recently, the Communications Department was allegedly allocated nearly R1 million to promote the investment summit.
Broader implications
This pattern of financial mismanagement continues whilst residents endure collapsed basic services, raising serious questions about accountability and governance oversight in municipalities operating under provincial administration.
The situation in Matjhabeng exemplifies the broader challenges facing local government financial management across South Africa, where irregular expenditure persists despite formal recovery interventions.
Municipal officials were not available for comment at the time of publication.
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