Reinstated corruption-accused municipal CFO has been a funder of the ANC

The corruption-accused Chief Financial Officer (CFO) of Matlosana Local Municipality, Mercy Phetla, had her foundation sponsor the ANC’s 2026 January 8 golf day and gala dinner, despite her recent dismissal over serious misconduct.

The move comes amid renewed political and legal turmoil in Matlosana, following the council’s controversial decision to reinstate Phetla after her dismissal.

The sponsorship took place about a month after a disciplinary probe found Phetla guilty on all five charges brought against her, including gross misconduct, dishonesty and dereliction of duty.

Newsday can confirm that the Mercy Phetla Foundation attended the fundraising event and set up exhibitions promoting sponsorship packages at the ANC function, hosted through the party’s Progressive Business Forum (PBF).

Phetla’s foundation was also photographed at the event alongside senior ANC North West officials, raising further questions about political relationships surrounding her case.

The event’s pricing structure included gala dinner seating and a range of golf sponsorship packages, with costs escalating depending on membership status and access to senior party figures.

For PBF subscribers, a table of eight at the gala dinner was priced at R28,750, while non-subscribers were charged R57,500 for the same package.

Golf sponsorship options ranged from the Chrome 4 Ball at R20,000 to the Presidential 4 Ball at R500,000, with Gold and Silver tiers priced at R150,000 and R100,000, respectively.

A further incentive, advertised as a “round of golf with the PEC member of your choice”, was listed at R100,000, effectively offering paying sponsors direct access to a provincial top brass.

Corporate exhibition and branding packages ranged from R100,000 to R500,000, with the top Platinum exhibitor tier priced at R500,000.

Newsday repeatedly contacted the ANC and Mercy Phetla Foundation on the matter, but did not get responses by time of publication. Comment will be added once received.

Reinstatement heads to court

Phetla was dismissed on 23 January 2026 after a disciplinary inquiry chaired by Advocate Sethene concluded in December 2025.

The ruling found her guilty on all five charges, including allegations linked to irregular financial conduct and abuse of authority, and resulted in her termination.

Although she has maintained her innocence, the probe concluded that “Ms Phetla cannot be left anywhere near to the Municipality’s purse or any public or private office for that matter”.

However, on 4 February 2026, factions within the ANC in the Matlosana council, supported by councillors from the EFF, PA and ACDP, adopted a resolution to dismiss the report and reinstate her.

The resolution passed with 34 votes in favour and 25 against.

The motion, led by council single whip Rose Tabanchu, instructed municipal manager Lesego Seametso to withdraw Phetla’s termination letter and reverse the implementation of the disciplinary findings.

However, the MM indicated that doing so would be unlawful, sparking a major back and forth in the already distressed municipality.

In an interview with the SABC, ANC North West Provincial Chairperson Nono Maloyi criticised senior municipal officials who engage in wrongdoing and later blame councillors.

“There’s quite an unfortunate situation in some of our municipalities where administrators… involve themselves in wrongdoing.”

“When they are found, they then get these politicians who happen to be councillors to agree with them or condone their wrongdoing.”

“Anybody who has decided to do things which is illegal, anyone conflicted with the law, he must excuse us in order for us to focus on what people of this province have elected us to do,” the leader said.

The reinstatement has since triggered an urgent High Court application in Mahikeng by Nova Matlosana In Action NPC, which is seeking to block the council resolution.

The organisation argues the council acted unlawfully by overturning a concluded disciplinary process, and that it does not have the authority to interfere in administrative disciplinary outcomes.

The application, filed in the North West Division of the High Court, seeks interim relief suspending the reinstatement pending a final ruling.

The organisation is also asking the court to review and set aside the council’s decision under Section 172(1)(a) of the Constitution and has invoked Rule 53 to compel the production of the record of council proceedings and reasons for the decision.

The Democratic Alliance has described the reinstatement as unlawful and warned it will lay criminal charges against councillors who supported the resolution.

The DA argues that the council cannot act as an appeal body for disciplinary outcomes involving senior managers and says the decision may amount to unlawful political interference in municipal administration.

The corruption scandal

The controversy is linked to the long-running “Variegated” corruption scandal that has damaged Matlosana’s governance and financial standing since early 2024.

Phetla was arrested by the Hawks in January 2024 over allegations that she received a VW Amarok bakkie valued at R1.4 million from service provider GMHM Construction and Projects without declaring it.

Investigators later linked her to payments of more than R6 million made to Variegated (Pty) Ltd for electrical materials that were allegedly never delivered, with the transactions described as “ghost deliveries.”

In late 2025, the Asset Forfeiture Unit obtained a preservation order to seize luxury assets worth about R2.7 million allegedly linked to Phetla, including a Maserati Levante, a Range Rover and a Mercedes-Benz.

The municipal disciplinary ruling concluded in December 2025 found her conduct was not accidental or administrative error, but deliberate and calculated.

The report upheld charges relating to unauthorised payments, exceeding delegated authority, and irregular acceptance of gratification. It warned that she could not be trusted with the municipality’s finances.

COGTA and ANC seek intervention

The fallout has now escalated into provincial and national political intervention.

On 8 February 2026, the ANC in North West issued a statement saying it had instructed its deployees in provincial government to invoke Section 139(1)(b) of the Constitution in Matlosana – something it has already been under for around two years.

This is a provision that allows provincial authorities to assume executive control when a municipality fails to fulfil its obligations.

The party said such an intervention would be aimed at restoring governance and service delivery, and ensuring implementation of findings from investigations conducted under Section 106 of the Municipal Systems Act.

This comes from renewed scrutiny at a national level, with well-placed insiders confirming that Newsday’s fearless reporting on the matter has sparked anger among upper echelons, particularly as the events can be seen as “tarnishing the brand of the ANC.”

Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa has also stepped in, calling an emergency meeting with North West provincial leaders to discuss a mitigation plan.

In a letter dated 6 February, Hlabisa cited concerns raised during a September 2025 oversight visit by parliamentary committees and the provincial legislature.

It noted that Matlosana had regressed from an unqualified audit opinion to a qualified one, while irregular and unauthorised expenditure had increased.

He further warned that service delivery had deteriorated despite commitments made by municipal leadership to improve performance.

The municipality has faced years of instability and mounting service delivery complaints across the KOSH region, which includes Klerksdorp, Orkney, Stilfontein and Hartebeesfontein.