South African Town’s CFO Faces Legal Action Over Corruption

The City of Matlosana has terminated the employment of its Chief Financial Officer, Mercy Phetla, following a disciplinary inquiry. Municipal Manager Lesego Seametso confirmed the termination took effect on January 23, 2026.

The dismissal concludes a period of political turmoil and allegations of corruption within the municipality.

Disciplinary Inquiry Findings

A disciplinary inquiry found Mercy Phetla guilty on five charges including gross misconduct, dishonesty, and dereliction of duty. The inquiry report characterized her actions as “calculated acts designed to defraud the municipality.” Phetla pleaded not guilty to all charges.

The charges against Phetla included alleged corruption, unauthorized expenditure, wasteful expenditure, and gross dishonesty. Specifically, the allegations involved the irregular acceptance of a VW Amarok valued at R1.4 million from a service provider, authorizing a R2.9 million payment for electrical material exceeding her authority, a R528,000 payment for undelivered goods, and bringing the municipality into disrepute following her arrest by the Hawks. The report stated that Phetla “dismally failed to challenge the evidence.”

Attempts to Block Termination

Following the disciplinary inquiry’s findings, a faction within the ANC-led council attempted to block the termination process. During a Council meeting on January 22, 2026, this group reportedly demanded that the Presiding Officer explain the outcome of the inquiry, which the Democratic Alliance (DA) Caucus Leader Gerhard Strydom described as an attempt “to turn Council into an unlawful appeal body.”

The opposition insisted that the Council lacked the authority to interfere with the process, leading the Speaker to abruptly adjourn the meeting. Advocate S. Sethene, the Presiding Officer of the disciplinary hearing, refused to entertain the Council’s interference.

Speaker’s Response and Subsequent Action

Speaker Stella Mondlane-Ngwenya subsequently admitted that the Presiding Officer indicated he would not table the report before the Council. A special council meeting was postponed indefinitely. With the political route blocked, Municipal Manager Lesego Seametso proceeded to issue the termination letter on January 23, 2026.

Political Reactions

Gerhard Strydom stated that the episode revealed a willingness by a faction within the ANC to undermine justice and accountability to protect those accused of fraud and corruption. ANC Provincial Chairperson Nono Maloyi previously cautioned councillors against interfering in administrative processes, emphasizing that political parties lack the authority to intervene in municipal administration or disciplinary processes. Maloyi stressed adherence to the constitution and legislative framework as the only legitimate basis for resolving municipal matters.

Phetla has maintained her innocence, claiming the charges are politically motivated, and previously indicated plans to appeal any adverse ruling. She did not respond to requests for comment from Newsday.