Corruption-accused CFO of vital South African city set to face the music

Corruption-accused suspended Chief Financial Officer (CFO) of the Matlosana municipality, Mercy Phetla, may face the music this week, as council is meant to convene to consider a disciplinary report against her.

Phetla is at the centre of ongoing legal and now-completed disciplinary proceedings regarding allegations of fraud, corruption, and money laundering.

In response to queries from Newsday, the speaker of the Matlosana council, Stella Mondlane-Ngwenya, said that the council is anticipated to sit sometime this week to receive the report.

It is up to council to either keep or remove her following the submission of the report, however, opposition parties are not holding their breath for any action.

Matlosana includes the towns of Klerksdorp, Orkney, Kanana, Stilfontein, Khuma, Tigane, Hartbeesfontein, and their surrounding areas, serving a population of approximately 398,676 residents.

Over the years, Matlosana Local Municipality has been crippled by a massive collapse in governance and financial integrity, highlighted by its unauthorised and wasteful expenditure ballooning to over R11 billion, forcing it under a mandatory administration.

A large part of the governance woes stems from ongoing corruption scandals involving senior officials, a key one of which centres on allegations against Phetla.

Corruption allegations galore

Appointed in January 2023 amid hopes for financial reform, Phetla’s tenure has been marred by a series of allegations, arrests, and legal battles that highlight deeper issues of corruption and accountability in local government.

Trouble surfaced publicly in August 2023 when a whistleblower alleged that Phetla had accepted a luxury VW Amarok 3.0 TSI V6 vehicle worth R1.4 million from GMHM Construction and Projects, a contractor doing business with the municipality.

The vehicle was allegedly purchased through GMHM’s ABSA account and transferred to Phetla as a bribe in exchange for favourable tender awards.

The allegations escalated in January 2024 when the Directorate for Priority Crime Investigation (Hawks) arrested Phetla on corruption charges.

She was accused alongside two GMHM employees. The Hawks claimed the bribe occurred in June 2023, shortly after her appointment.

Phetla was released on R35,000 bail after appearing in the Klerksdorp Magistrate’s Court. The bail was paid by the son of the director of GMHM, who was arrested with the CFO.

Adding fuel to the fire, Phetla posted a WhatsApp status claiming she was “even more powerful than Mbalula (Mr 10%)” and dubbing herself “Ms 15%,”—referencing ANC Secretary-General Fikile Mbalula’s alleged moniker.

Phetla later dismissed it as sarcasm in response to “lies” spread about her.

As the GMHM case unfolded, new allegations emerged involving Variegated Pty Ltd. Between September 2023 and January 2024, the municipality allegedly paid over R6 million to the company for electrical equipment and services that were never delivered.

Investigations revealed that Phetla signed off on a R2.9 million payment in January 2024 without the municipal manager’s approval, violating the Municipal Finance Management Act (MFMA) and National Treasury regulations.

In February 2024, the ANC-majority council rejected suspension motions from the Democratic Alliance (DA). The DA accused the ANC of providing “political protection” and called for provincial intervention.

A complaint was then lodged with the Public Protector over MFMA violations and the failure to suspend Phetla. The Public Protector launched a preliminary investigation in May 2024.

In August 2024, Phetla was arrested again, this time alongside a municipal official and Variegated director Tiisetso Sebetlela.

The charges included fraud, corruption, and money laundering. Hawks probes showed that portions of the funds were diverted to purchase luxury vehicles, including a Porsche, Range Rover, and Maserati. She pleaded not guilty.

Phetla attempted to block her suspension through legal channels but was eventually suspended amid mounting pressure.

In a twist, by December 2024, Phetla returned to work following intervention by the Commission for Conciliation, Mediation and Arbitration (CCMA).

A full misconduct report was allegedly withheld from the council, with claims of a “secret ANC deal” to reinstate her and the municipal manager. The DA labelled it a cover-up.

The scandals reached a peak in 2025, and she was suspended once again.

The North West High Court granted a R2.7 million preservation order, freezing luxury vehicles linked to the Variegated fraud.

Hawks linked assets to Phetla, which included a Mercedes-Benz CLA200, Range Rover Evoque, and Maserati Levante. Three vehicles were later forfeited under the Prevention of Organised Crime Act.

Phetla denied that she owns any of the mentioned vehicles.

In October 2025, charges against Phetla and five co-accused were set for trial.

In November, the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA) in the North West Division obtained a preservation order of the R1.4 million VW Amarok vehicle.

Following the preservation order, the Director of Public Prosecutions in the North West, Dr Rachel Makhari, said that “those who abuse public resources for personal gain will face the full might of the law.”

“We remain committed to upholding the law and protecting communities from individuals who exploit positions of authority for criminal benefit.”

Court proceedings began in November, and are set to continue later this year.

Phetla’s bid to halt disciplinary hearings by the municipality was dismissed by the Mahikeng High Court on September 26, 2025.

She was ordered to pay costs, clearing the way for a municipal disciplinary investigation, which was concluded in December 2025 – which council is meant to sit for this week.

Phetla has maintained her innocence throughout, claiming in interviews that the allegations are politically motivated and that she personally funded her assets.

Critics, including the DA and South African Communist Party (SACP), have called for her removal, viewing her case as emblematic of systemic municipal corruption.

Opposition parties not holding their breath

DA caucus leader in the Matlosana municipality, Gerhard Strydom, said that, if found guilty based on the outcomes of the disciplinary process, the law requires the municipality to implement the sanction imposed by the Presiding Officer.

“The only role for the municipality is to take note of the outcome and report the outcome to the Minister and Member of the Executive Committee for Local Government in the province.”

However, Strydom is not holding his breath for action.

“Although legislation is clear that the municipality cannot interfere in the outcome, history of the case of the CFO makes it difficult to believe that the outcome of the disciplinary case… will be accepted by the ANC majority in Council.”

He said that since early 2025, the ANC, by majority decision, “went out of their way to protect the CFO against any action being instituted against her.”

“This time I can’t see that it will be different and predict that they will illegally try to act as an appeal committee on behalf of the CFO, blaming the Presiding Officer for the outcome of the hearing.”

He expects them to “ignore the stipulation of the Regulations and the fact that the processes determine that it is incumbent on the CFO to appeal the matter if she does not accept the outcome.”

The financial standing of the municipality

The municipality has shown a trend of wasteful spending, which was placed under interventions in terms of section 139 of the Constitution in 2024.

On Friday, 24 October, the North West Legislature Standing Committee on Provincial Public Accounts (SCOPA) said it was “shocked” by the rising wasteful expenditure at Matlosana.

Daily Investor reported how, in the 2021/22 financial year, the municipality’s unauthorised, irregular, fruitless and wasteful expenditure (UIF&W) stood at R6 billion. By 2024/25, it had increased to over R11 billion.

Over the same period, unauthorised expenditure at the municipality went from R3.1 billion to R6.3 billion, while fruitless and wasteful expenditure went from R85.6 million to R821.4 million.

Irregular expenditure remained largely flat at R3.6 billion, although R1.2 billion was written off in 2023.

Matlosana’s Mayor, Fikile Mahlope, attributed these increases, in part, to deficiencies and weak internal controls that are manipulated within the supply chain management.