ANC promises not to interfere in damning report against corruption-accused municipal CFO

The African National Congress (ANC) in the North West has warned that it will act against councillors who fail to comply with the law, as the City of Matlosana Local Municipality prepares to decide the fate of corruption-accused Chief Financial Officer (CFO) Mercy Phetla.

In response to queries from Newsday, Nono Maloyi, the ANC North West Provincial Chairperson, stated that while the party respects municipal autonomy, it will not tolerate unlawfulness.

“Any conduct by its councillors that undermines the law or the proper functioning of a municipality will be addressed decisively, in a manner that strengthens public trust and upholds constitutional democracy,” Maloyi said.

The statement comes amidst speculation regarding how the ANC-led council will handle a disciplinary report that recommends Phetla’s immediate dismissal.

Maloyi said that the resolution of such matters must be grounded strictly in law rather than political manoeuvring.

“It is our considered view that 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 weaken local government rather than strengthening it,” said the ANC North West chair.

He further urged that the “municipality must be allowed to do what the law obliges it to do, using the instruments provided by the Constitution and relevant legislation”.

The damning report

The municipal council is set to meet on Thursday, 22 January, to consider the findings of a disciplinary inquiry chaired by Advocate S. Sethene.

Documents seen and reported by Newsday show that the inquiry, finalised in late December 2025, recommended the dismissal of CFO Phetla after she was found guilty on all five charges of gross misconduct, dishonesty and dereliction of duty.

“The conduct of the CFO, construed in full, does not appear to have been a negligent conduct. It was a calculated act designed to defraud the municipality,” the report states.

Phetla pleaded not guilty to all charges but was convicted on every count.

The first charge related to the unauthorised payment of R2.9 million to Variegated (Pty) Ltd for electrical material.

The report found that by approving the requisition and payment in January 2024, she contravened Section 81 of the Municipal Finance Management Act and failed to act in the municipality’s best interests.

The second charge found she exceeded her delegated authority by approving the R2.9 million transaction without Municipal Manager approval, despite only being authorised to approve payments up to R1.5 million.

The third charge involved “unauthorised, irregular, fruitless and wasteful expenditure” of R528,000 paid to Variegated for goods that were never delivered, exposing the municipality to financial loss.

The fourth charge related to the alleged acceptance of a VW Amarok worth R1.4 million from GMHM Construction and Projects, deemed “gratification” under PRECCA and a breach of the Code of Conduct.

The final charge cited reputational damage following her arrest, which allegedly undermined public confidence in the municipality.

The report noted Phetla was “unrepentant about her conduct.”

Her defence relied on procedural arguments and claims of political motivation, including an assertion that the vehicle matter should be left to the courts.

The chairperson rejected this, ruling that criminal proceedings do not prevent disciplinary action.

Fears of political interference

The ANC in the North West’s call for adherence to the law addresses concerns raised by opposition parties that the council might attempt to shield the CFO.

Gerhard Strydom, the DA caucus leader in Matlosana, expressed skepticism that the ruling party would accept the outcome.

“Although legislation is clear that the municipality cannot interfere in the outcome… 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,” Strydom said.

He noted that the law requires the municipality to implement the sanction imposed by the Presiding Officer, and that the council’s only role is to “take note of the outcome and report the outcome” to provincial authorities.

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.”

In his response, Maloyi attempted to draw a clear line between the party and the administrative functions of the state.

He insisted that the ANC should not be dragged into “internal municipal disciplinary or governance matters that fall outside our formal competence.”

“Please don’t involve the African National Congress and its leadership in matters that fall squarely within the competence of a municipality,” Maloyi told Newsday.

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

Newsday will be following the developments closely.

The publication also contacted Phetla for comment, but did not receive a response by time of publication.