Political parties in Secunda area demand accountability after R23m municipal fraud
DA and Freedom Front Plus want swift action.
Political parties in Govan Mbeki Municipality are calling for swift criminal action and full accountability after a forensic investigation uncovered large-scale financial fraud worth more than R23 million, involving suspicious account consolidations and reversals carried out by municipal employees.
The investigation by Peyper Forensics found that at least six employees were directly involved in the transactions. Three of these employees have resigned during the probe.
The scheme reportedly forms part of a much larger pattern of manipulation within the municipality’s revenue system. R23 million in revenue losses through unlawful debt concealment
Freedom Front Plus councillor Aranda Nel-Buitendag said the forensic report exposes “widespread and willful corruption” taking place between 2022 and 2025, involving more than 16 000 unauthorised account consolidations and transactions.
According to Nel-Buitendag, these irregular activities resulted in revenue losses of at least R23 million through unlawful concealment of debt within the municipal system.
She said the investigation also found that at least 340 accounts benefitted, while more than 4 600 residents were unfairly disadvantaged, which she described as a direct contributor to the municipality’s ongoing financial collapse.
“Twelve officials have been directly implicated, while several others resigned before or during the investigation, further undermining accountability,” she said.
Nel-Buitendag added that while residents face unreliable water supply, recurring power outages and inconsistent refuse removal, the funds meant for essential service delivery have instead been lost to corruption.
Buidendag-Nel said her party supports recommendations that the matter be referred immediately to the police and the Hawks, and that the remaining forensic work—especially the digital audit trail—be finalised without delay.
Nel-Buitendag said the Municipal Finance Management Act clearly requires the recovery of losses, tightening of internal controls, improved security of the Munsoft financial system, and strengthened oversight over revenue and finance divisions.
“We demand that legal proceedings be instituted immediately, that all unauthorised debt reversals and consolidations be re-invoiced and recovered, and that guilty officials be permanently banned from public service,” she said.
The Democratic Alliance councillor, Portia Mpatlanyane said the system wasn’t neglected — it was exploited. Mpatlanyane said the findings point to deeper structural failures in governance and internal controls.
“When R23.2 million can be shifted through more than 16 000 irregular transactions, it tells us the system wasn’t just neglected — it was exploited,” said Mpatlanyane.
She added that the resignation of implicated officials during the investigation makes transparent consequence management even more urgent.
“What residents need to know is that we cannot rebuild trust without accountability. That’s why we need immediate verification of all beneficiaries, reversal of irregular credits where proof doesn’t exist, and a complete overhaul of the internal controls that failed so dramatically,” said Mpatlanyane.
