Govan Mbeki Municipality must cough up R1,6m

Govan Mbeki Municipality must cough up more than R1,6 million before month end to pay its former municipal manager.

The council lost its final battle in this legal, and expensive war when the Commission for Conciliation, Mediation and Arbitration (CCMA) also found GMM’s dismissal of Felani Mndebele was procedurally and substantively unfair.

The hearing, held at the CCMA offices in Secunda, dragged on from October last year to September 12.
Ridge Times asked Mndebele’s comment on the CCMA outcome.

“I am happy because I am finally vindicated. This also affected my family, physically and emotionally.”

Mndebele is looking forward to finding new employment. GMM appointed Mndebele on October 1, 2018, with a monthly salary of just under R140 000. His contract was set to expire on September 30, 2022.

The war between the municipality and Mndebele began in 2020 when the former mayor, Thandi Ngxonono recommended that Mndebele be placed on precautionary suspension due to non-performance.

Mndebele was charged and subjected to a disciplinary hearing, but his attorneys approached the Middelburg High Court which declared the disciplinary proceedings null and void.

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The court also refused the municipality leave to appeal the judgement.

However, GMM’s council still resolved, in an extraordinary meeting to terminate Mndebele’s employment as of July 16, 2021. He was still receiving his salary and benefits at that time.

Mndebele’s attorneys requested the reasons for his dismissal.

GMM responded on August 3, 2021, that Mndebele’s contract was terminated due to an irretrievable breakdown in trust and the working relationship between the municipality and its accounting officer (Mndebele).

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This correspondence was signed by the new executive mayor, Nhlakanipho Zuma. He is still in the mayoral seat.
The matter eventually ended up at the CCMA for decision.

CCMA Commissioner, Freddy Baloyi said in his findings, GMM had conceded that no procedure was followed before the applicant was dismissed.

“It is important for me to note this because this was an acknowledgement that the procedure followed in the initial hearing against the applicant was not relied upon in this concession. The concession relates to the dismissal of the applicant through the council resolution.”

Baloyi said GMM did not stipulate the reasons for the termination except that the item about the termination of his employment contract was discussed and dismissal was then effected on July 16, 2021.

“The applicant was supposed to be given reasons for his dismissal, but the respondent only did so upon enquiry by his lawyers on August 3, 2021.

“The applicant was dismissed as a result of a resolution by Council and not a disciplinary hearing.

“He did not face any allegations and was not given the opportunity to respond to those allegations. Allegations were made against him and evidence was led only during this arbitration process by the respondent.

“The reasons given by the respondent after the termination of his employment do not amount to charges but mere allegations as they were not tested in a disciplinary hearing,” said Baloyi.

GMM’s reasons for Mndebele’s terminations were:
• Failure to deliver services – his alleged negligence led to permanent load-shedding of electricity and a serious backlog on the services.

• Failure to prepare and submit the Annual Financial Statement on time for financial 2018/2019, resulting in the municipality not receiving its equitable share from the National Treasury on time for the first quarter. The municipality did not have the capital to service debts and defaulted on debts and accumulated interests.

• The appointment of Ideal Prepaid (Pty) Ltd for 36 months in May 2019 in contravention of the Municipal Supply Chain Management Regulations and without the minutes of the Bid Evaluation Committee and Bid Adjudication Committee. The matter was supposed to have been referred back to the committees.

• Failure to inform the Provincial Treasury, the National Treasury and the Auditor-General of South Africa about Ideal Prepaid’s appointment and the reasons thereto.

• Mndebele entered into a service level agreement with Ideal Prepaid (Pty) Ltd for the rental of equipment for a period of 72 months. GMM claimed Mndebele, as accounting officer, was negligent to sign this agreement which exposed the municipality to the loss of revenue because the community could not buy prepaid electricity direct from the municipality offices.

• By allowing Landis + Gyr, whose contract had lapsed in 2018, to continue providing services to the municipality, resulting in the municipality accumulating irregular expenditure.