Council of vital South African city throws corruption-accused CFO a lifeline

The City of Matlosana’s council meeting scheduled for Thursday, 22 January 2026, to consider a disciplinary report against corruption-accused CFO Mercy Phetla was postponed following disruptive proceedings.

Speaker Stella Mondlane-Ngwenya halted the sitting after repeated caucus breaks by African National Congress (ANC) councillors stalled deliberations.

While the Speaker claimed the postponement was necessary because the Municipal Manager was not present in council and a legal team was needed to unpack the findings, internal sources suggest the move was a stalling tactic driven by internal divisions in the ANC majority.

The postponement stands in stark contrast to the directive issued by ANC Provincial Chairperson Nono Maloyi earlier this week, in which he said to allow the stipulated legal action to unfold.

Maloyi had explicitly warned against political interference, stating, “adherence to the constitution and legislative framework remains the only legitimate basis for resolving municipal matters.”

“Any attempt to bypass or dilute these processes has the potential to weakens local government rather than strengthening it.”

Maloyi had promised that any conduct by councillors undermining the law would be “addressed decisively”.

However, well-placed sources from the council chamber indicate that factions in the ANC did not want the damning report to go through, directly contradicting the provincial mandate to allow the process to conclude.

Yet, ANC regional leader Nathan Oliphant told Newsday that “the adjournment/ postponement is not unlawful. We are confident that all our deployees will follow the law.”

“I am beyond angry,” said Democratic Alliance (DA) caucus leader Gerhard Strydom. “They kept on delaying the sitting and would not allow for a vote to see whether it should continue.”

“This is a very sad day for hopes of accountability,” he added.

The report

The inquiry, chaired by Advocate S. Sethene and concluded in December 2025, found Phetla guilty on all five charges of gross misconduct, dishonesty, and dereliction of duty, recommending her immediate dismissal.

The report detailed a series of infractions, including, but not limited to:

• The “Amarok” scandal: The irregular acceptance of a VW Amarok worth R1.4 million from a service provider, deemed a “gratification” and gross dishonesty.
• Unauthorised spending: The authorisation of R2.9 million for electrical materials in contravention of the Municipal Finance Management Act.
• Wasteful expenditure: A payment of R528,000 for goods that were never delivered.

Advocate Sethene’s report described Phetla’s defence as “incredulous” and her actions as “calculated act[s] designed to defraud the municipality”.

The chaotic postponement echoes predictions made by the DA leading up to the sitting.

Strydom had expressed scepticism that the ANC majority would accept the disciplinary outcome, despite legal obligations to do so.

“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 warned.

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

He emphasised that the council’s only legal role is to “take note of the outcome and report the outcome” to provincial authorities, rather than to debate or stall the findings.

A test of authority

The standoff in Matlosana now serves as a significant test of the ANC provincial leadership’s authority.

Maloyi had insisted that the ANC should not be dragged into “matters that fall squarely within the competence of a municipality.”

Yet, the reported factionalism and the breakdown of the council sitting suggest that local political dynamics are overriding the “lawful, administrative, and council-led mechanisms” Maloyi championed.

Insiders allege that a charge was led by a faction aligned to the CFO to defy the ANC PEC mandate to respect the report.

It remains to be seen if the provincial leadership will follow through on its promise to address this conduct “decisively” to strengthen public trust.