Ekurhuleni mayor defends reappointment of CFO

The City of Ekurhuleni Mayor Doctor Xhakaza said the city reaffirms its confidence in the appointment of Kagiso Lerutla as its group financial officer (CFO).

This comes after Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa raised compliance concerns on the reappointment of Lerutla as the city’s CFO.
The minister requested Gauteng MEC for Cooperative Governance, Traditional Affairs and Infrastructure Development, Jacob Mamabolo, to intervene. In this process, the MMC allowed the municipality to express its views on the minister’s correspondence.

Mayor responds
Xhakaza said the city has noted the correspondence received from the MEC and the leaked letter drafted by the Minister of CoGTA, concerning the validity of the appointment of Kagiso Lerutla as Group Chief Financial Officer (GCFO).

While the city acknowledges the concerns raised, he said it still believes that the conclusions drawn within the minister’s correspondence lack the totality of the facts surrounding Lerutla’s reappointment in August and the context within which the municipality found itself in at the time.

“We wish to reaffirm that Lerutla’s reappointment followed due process, aligning with the governance frameworks and principles of merit-based progression within the institution. His service record reflects a commitment to financial discipline, ethical governance, and sustainable fiscal management,” said Xhakaza.

The mayor said that the incumbent CFO is a chartered accountant with a distinguished career in public sector finance management. He joined the city in 2014 as the divisional head of governance and compliance, progressing through senior roles to become the group chief financial officer in 2019 at the age of 32.

During his tenure, Lerutla has led the city to three consecutive clean audits, secured an AAA credit rating (the highest attainable), and was nominated for public sector CFO of the year in 2022.
His expertise in financial governance, supply chain management, and audit compliance is well established, with his leadership contributing significantly to the city’s financial stability and governance integrity.
“We look forward to a cooperative and solution-driven engagement with the Department of CoGTA to ensure administrative continuity and the preservation of good governance in our city.”
The city confirmed that it will promptly respond to the MEC within the stipulated timeframe, as outlined in its correspondence to the city.

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