Tshwane City Manager cannot get off scot-free

Hold him accountable, OUTA tells Gauteng

31/07/2019 14:13:10

Tshwane City Manager cannot get off scot-free

The Organisation Undoing Tax Abuse (OUTA) has written to Gauteng CoGTA MEC Lebogang Maile imploring him to halt payment of any settlement to the City of Tshwane’s departing municipal manager, Dr Moeketsi Mosola.

MEC Maile has a legislative duty to provide the necessary oversight on municipalities, which has been sorely lacking in the past and OUTA welcomes the MEC’s instruction to Tshwane to explain the terms of the city manager’s departure.

OUTA believes that the Tshwane council should suspend the city manager without compensation and institute disciplinary proceedings against him.

Mosola is implicated in contravening the Municipal Finance Management Act (MFMA.) He was instrumental in awarding a R12 billion contract to consulting firm GladAfrica by incorrectly applying Regulation 32 of the Municipal Supply Chain Management Regulations which is in contravention of the MFMA. The awarding of the contract was investigated on behalf of the City by Bowman Gilfillan.

In support of the call to intervene, OUTA provided the MEC with documents including copies of Mosola’s contract, the City’s separation agreement with him and the Bowman report.

Michael Holenstein, OUTA’s Manager for Local Government, quotes section 173 of the MFMA as the basis for action against Mosola. “The MFMA clearly states that an accounting officer of a municipality is guilty of an offence if that accounting officer, deliberately or in a grossly negligent way, fails to take all reasonable steps to prevent corruptive practices in the implementation of the municipality’s supply chain management policy.” 

OUTA believes that paying Mosola a golden handshake and making the Bowmans report disappear is a slap in the face for the residents of Tshwane. The payout is due to be paid today and is believed to be at least R8 million, based on his contract to January 2022 at his current salary of R3.214 million a year. “Communities have a right to be informed about the business of their local council and must demand action against those who have violated the law. These reports cannot merely be swept under the carpet,” says Holenstein. “Instead of rewarding Dr Mosola for contravening the law, the City should be laying criminal charges against the city manager.”

Mosola has twice managed to frustrate the council’s attempts to suspend him. “He even used the public’s money to interdict the tabling of the controversial Bowmans report which allegedly implicates him in wrongdoing,” says Holenstein.

“We demand that the Bowmans report, the settlement agreement and confirmation of the cancellation of the contract with GladAfrica be made available to the public,” says Holenstein. “The cancelled contract should have already been published on the metro’s official website. We insist that all monies paid by City of Tshwane to GladAfrica in respect of the illegal contract should be recovered by the City. At this stage it is around R700 million.”

OUTA reiterates that Mosola’s suspension without compensation is in the interest of all Tshwane’s citizens. “The City of Tshwane must institute disciplinary procedures against him and defer the payment of any compensation pending the outcome of investigations into the procurement process in terms of the GladAfrica contract.” 

OUTA is a proudly South African civil action organisation, that is purely crowd funded. Our work is supported by ordinary citizens who are passionate about holding government accountable and ensuring our taxes are used to the benefit of all South Africans.