CFO won’t be removed: Top job in City of Ekurhuleni stirs clash

In what is set to test the workings of the three-tier cooperative governance in the government of national unity (GNU), Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa has raised legal compliance concerns on the appointment of City of Ekurhuleni’s group chief financial officer (CFO).

In a letter, seen by The Citizen, to Gauteng MEC for cooperative governance, traditional affairs and infrastructure development, Jacob Mamabolo, Hlabisa said the appointment of Kagiso Lerutla, constituted a “contravention of the Municipal Systems Act and its regulations – rendering it consequently invalid”.

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Hlabisa requested Mamabolo to “take appropriate steps contemplated in Section 56(6) of the Act to enforce compliance and to submit a report to the minister on the steps that will be taken to enforce such compliance within 14 days from date of this letter”.

In a letter to mayor, Nkosindiphile Xhakaza, Mamabolo said before making a final determination on Lerutla, he deemed it “prudent, in the spirit of cooperative governance, to afford your good self the opportunity to express the municipality’s views on the minister’s correspondence”.

City of Ekurhuleni mayor responds

Challenging Hlabisa’s assertion on Lerutla’s appointment, Xhakaza on Sunday called for an intergovernmental relations (IGR) meeting to thrash out the impasse – indicating that the CFO would not be removed.

The IGR facilitates interactions between national, provincial and local governments – as well as their institutions – ensuring that various levels of government work together to implement policies, share resources and address issues affecting communities.

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The IGR ensures cooperation, coordination the effective delivery of services – especially in infrastructure, public health and local development.

“While we acknowledge concerns raised, we believe that the conclusions drawn within the minister’s correspondence, lack the totality of the facts surrounding Mr Lerutla’s reappointment in August 2024 and the context within which the municipality found itself in at the time,” said Xhakaza.

He added: “His service record reflects a commitment to financial discipline, ethical governance and sustainable fiscal management.”