Corruption-accused CFO of vital South African town faces the music

The City of Matlosana’s controversial Chief Financial Officer, Mercy Phetla, has been officially dismissed.

The Municipal Manager, Lesego Seametso, confirmed with Newsday that her office had issued a termination letter to Phetla on 23 January 2026 through multiple avenues.

“This termination takes place with immediate effect,” noted Seametso.

This development brings to an end a chaotic saga marked by political infighting and allegations of grand corruption.

The dismissal follows a disciplinary inquiry that found Phetla guilty on all five charges of gross misconduct, dishonesty, and dereliction of duty.

While regulations obligated the municipality to implement the sanction, the termination came only after a dramatic failed attempt by a faction within the ANC-led council to block the process,.

According to the Democratic Alliance (DA), the termination letter was issued administratively after a Council meeting convened on 22 January descended into disarray.

DA Caucus Leader Gerhard Strydom claimed that a faction of the African National Congress (ANC) “attempted to shield the CFO from accountability,” as reported by Newsday.

This group argued that the Council had not approved certain charges and demanded the Presiding Officer appear before them to explain the outcome, a move the DA described as an attempt “to turn Council into an unlawful appeal body.”

When the opposition insisted that the Council had “no authority to interfere with the process,” the Speaker abruptly closed the meeting while proposals were still on the table.

The scheme to delay the dismissal collapsed when the Presiding Officer of the disciplinary hearing, Advocate S. Sethene, refused to entertain the Council’s interference.

In a communication sent to councillors following the adjourned meeting, Speaker Stella Mondlane-Ngwenya admitted that the Presiding Officer had “indicated that he is not in a position to table the report before council at any point as council and the Speaker have no role to play on the matter at this stage”.

Consequently, the Speaker was forced to postpone the special council meeting “indefinitely.”

With the political route blocked, the Municipal Manager proceeded to issue the termination letter the following day, acting in line with the law.

“This episode exposes a troubling reality: a faction within the ANC is prepared to undermine justice, accountability, and due process to protect those accused of fraud and corruption,” Strydom claimed.

Nono Maloyi, the ANC Provincial Chairperson, had previously warned councillors against interfering in administrative processes.

“Adherence to the constitution and legislative framework remains the only legitimate basis for resolving municipal matters, and any attempt to bypass or dilute these processes has the potential to weakens local government rather than strengthening it,” Maloyi told Newsday.

Maloyi had emphasised that political parties “are not vested with the authority to intervene in the day-to-day administration or internal disciplinary processes of a municipality”.

The municipal disciplinary process

The termination concludes a disciplinary process that delivered a scathing verdict on Phetla’s tenure. The inquiry found that her actions were “calculated act[s] designed to defraud the municipality” rather than mere negligence.

Although Phetla pleaded not-guilty on all counts, the report found that the grounds for her dismissal include:

• Alleged corruption: The “irregular acceptance of gratification” in the form of a VW Amarok worth R1.4 million from a service provider.
• Unauthorised expenditure: Authorising a payment of R2.9 million for electrical material, exceeding her delegated authority,.
• Wasteful expenditure: A payment of R528,000 for goods that were never delivered,.
• Gross dishonesty: Bringing the municipality into disrepute following her arrest by the Hawks and the public fallout.

The report noted that Phetla “dismally failed to challenge the evidence” and concluded that she “cannot be left anywhere near to the Municipality’s purse.”

Phetla did not answer any queries from Newsday. However, she has maintained her pleas of innocence, alleging that the charges against her were “politically motivated.” She had shared previously that she planned on appealing any adverse ruling against her.