Moses Kotane Municipality appoints VBS suspect as CFO

The Moses Kotane local municipality in the North West has appointed fraud suspect Mzwandile Mkhize as chief financial officer (CFO) – despite a legal challenge.

A legal letter challenging the appointment was sent to the council by ward councillor Matsapa Phillista Mabula, claiming Mkhize faces allegations of violating the Municipal Finance Management Act (MFMA).

Urgent letter sent asking to withdraw recommendation for Mkhize’s appointment

Mabuza Attorneys, representing Mabula, sent an urgent letter to municipal manager Mokopane Letsoalo on 30 November, asking him to withdraw his recommendation for Mkhize’s appointment to council, which was sitting on the same day.

They argued that Mkhize was not suitable but Letsoalo went ahead and the council confirmed the appointment.

Letsoalo was adamant his decision was correct, saying Mabula’s accusations were “baseless”.

Mabula said the recruitment process did not comply with the Local Government Regulations on Appointment and Conditions of Employment of Senior Managers.

Also, she cited Mkhize and his co-accused of contravention of the MFMA emanating from investing funds from their former employer, West Rand district municipality, with VBS Mutual Bank.

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Mkhize resigned before municipality could implement recommendations of forensic investigations

Mkhize resigned from his position before the municipality could implement the recommendations of the forensic investigations

Mabula, through her attorneys, raised the fact that Mkhize resigned from his position before the municipality could implement the recommendations of the forensic investigations into the irregular investment.

The three officials – former municipal manager Moroashike Mokoena, 62, former CFO Romeo Mohaudi, 35, and Mkhize, 38, who was manager: income and expenditure – faced 20 counts of corruption and two of contravening the MFMA.

Mabula’s lawyers expressed concern that Letsoalo failed to disclose Mkhize’s alleged irregular actions when he was appointed the first time as CFO at Kotane in 2018.

“It should have been clear to you by now that this alone makes him not suitable for appointment,” the letter said.

ANC provincial executive committee wants Mkhize’s appointment reversed

However, it is understood that the ANC provincial executive committee wants Mkhize’s appointment reversed after secretary-general Fikile Mbalula voiced anger that the Moses Kotane council had endorsed it.

It is believed that Luthuli House was opposed to any appointment of members linked to the VBS saga as that would affect the ANC performance in the 2024 election.

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