FOLLOWING months of investigation by the Sunday Independent on activities at the City of Matlosana Local Municipality, the police swiftly made another arrest of a senior official and a service provider for R2.9 million of “ghost” electrical equipment that was never delivered.
Matlosana local municipality in North West was not always in the newspapers until the arrest of the chief financial officer (CFO) Mercy Phetla who is facing multiple charges of corruption and is currently out on bail after the court granted her another second bail application separate from other corruption charges she faces.
On January 17, 2023, Phetla and the wife of a service provider were arrested after it emerged that Phetla had been receiving gifts from a service provider who, among other gifts, bought her a vehicle worth R1.4 million.
According to the Directorate for Priority Crime Investigation (Hawks), Phetla received a VW Amarok bakkie from GMHM Construction and Projects employees in June 2023. This gift was allegedly in exchange for service delivery tenders she gave to the company.
Phetla was arrested on January 17, alongside two employees of GMHM, Matshepiso Mothelesane, 39, and Nomthandazo Mokasule, 49. The trio were released on R35 000 bail each.
But hours before the arrest, Phetla made it clear in a post on her WhatsApp status, where she stated: “I am even powerful than Mbalula (Mr 10%) nna ke (I am) Ms 15%.”
A few days after her first bail of R35 000, the Sunday Independent revealed that Phetla’s bail was paid for by the son of the same wife of the service provider she was arrested with on charges emanating from their allegedly shady relationship.
At the time, Phetla denied the origins of the funds for the bail and told the publication that it was a “friend” who had paid and said that she would pay it back. However, the owner of the GMHM construction and projects Patrick Mokasule confirmed his son had paid for the bail.
On April 7, the Sunday Independent revealed that Phetla had deliberately acted with disregard for the Municipal Financial Management Act.
She paid Variegated PTY Ltd almost R3 million, a company owned by Tiisetso Sebetlele for electrical equipment without the knowledge nor approval of the municipal manager, as per the requirement of section 79 of the MFMA.
On January 5, 2024, Phetla signed and approved the electrical equipment Purchase Requisition.
On January 9, 2024, the municipality made a purchase order to Variegated Pty Ltd for electrical equipment worth R2.9 million through the municipality’s buying officer.
The following day on January 10, 2024, the municipality’s acting store buyer and controller Mamatebisi Josephine Tsimane claimed in a document to have received the goods from Variegated Pty Ltd company.
On the same day of January 10, the Variegated Pty Ltd company submitted an invoice for payment to the municipality which was then approved by Phetla and paid on the same day at 15h45.
On April 14, the publication revealed that Phetla and the now-axed Mayor James Tsolela were in a bitter dispute where the two ex-allies, in leaked WhatsApp messages, promised to “deal” with each other if the information about the funds received from GMHM construction and projects - was to find its way to the public.
In the WhatsApp chats, it appears that Phetla was the mastermind behind the solicitation of funds from service providers who paid directly to Tsolela’s personal bank account.
At the time Tsolela said that the funds were meant for his political party’s activities.
After the report by the Sunday Independent, the ANC in the North West took a decision to fire Tsolela and suspend Phetla from her duties pending the outcome of the investigation.
At the time, Mokasule of GMHM, told the publication that both Phetla and Ntsolela had milked him for hundreds of thousands of rands in cash under the impression that he was donating to ANC activities in Matlosana.
On August 19, the trio were arrested and charged with fraud by members of the Hawks' Serious Corruption Investigation Unit, following an investigation into allegations of procurement irregularities.
“The accused have appeared in court on a charge of fraud and were granted bail. Phetla was granted R35 000, Sekhejane R5 000, and Sebetlele was granted R20 000. The Court has ordered that the accused report at their nearest police stations once a week and that they must not be in contact with the State's witnesses.
“The Provincial Head of the Directorate for Priority Crime Investigation, Major General Patrick Mbotho, and the Director of Public Prosecutions in North West, Dr Rachel Makhari have welcomed the arrest and subsequent court appearance of the accused.
“They have vowed that the Hawks and NPA will continue working together to fight malfeasance in public institutions,” read the SAPS NW statement.
The case was postponed to November, 12 for further investigation.