Minister in the Presidency Khumbudzo Ntshavheni is under intense scrutiny as the Hawks finalize their investigation into allegations of fraud and corruption during her tenure as municipal manager at the Ba-Phalaborwa Municipality. The case, which has its roots in a 2009 municipal tender scandal, raises serious questions about financial governance and accountability in South Africa.
ALSO READ: Hawks Crack Down on Matric Results Breach: Johannesburg Suspect Detained in R100 Scheme
The Origins of the Scandal
In July 2009, the Ba-Phalaborwa Municipality awarded a contract worth R584,000 to Makwande Chartered Accountants and Business Advisors to prepare the municipality’s 2008/09 financial statements. However, irregularities quickly surfaced, with the contract’s value ballooning to over R2.3 million. Despite this significant increase, only R268,681.40 was paid to the firm. The awarding of the contract bypassed critical procedural requirements, with evidence suggesting that the company did not even submit its bid before the stipulated deadline.
Former High Court Judge Gerrit Muller described the tender process as “repugnant and devastating” in a 2020 judgment, prompting referrals to the Hawks and the National Prosecuting Authority (NPA) for further investigation.
The Role of Ntshavheni
At the center of this controversy is Minister Ntshavheni, who, as the municipal manager at the time, held the authority to approve contracts. Evidence presented in court indicated that she not only extended the scope of Makwande’s contract but also allegedly negotiated the price increase despite knowing the company had failed to meet the submission deadline.
A 2022 High Court judgment further emphasized the irregularities, declaring the tender process non-compliant with principles of fairness, transparency, and cost-effectiveness, as outlined in the Constitution.
Auditor-General’s Findings
The Auditor-General’s report on Ba-Phalaborwa’s 2008/09 financial year painted a grim picture of Ntshavheni’s leadership. The report criticized her for failing to prevent unauthorized and wasteful expenditure, which totaled nearly R25 million, and for not maintaining accurate financial records. It also highlighted discrepancies in bad debt provisions, with the municipality understating its bad debt by R47.1 million.
The report also revealed that the municipality lost R468,371 due to employee misappropriation of funds meant for prepaid electricity. Such findings underscore systemic issues in financial governance during her tenure.
Current Developments
Hawks spokesperson Colonel Katlego Mogale confirmed that the investigation has been completed and that the case docket is now with the Director of Public Prosecutions (DPP) for a decision on prosecution. Limpopo NPA spokesperson Mashudu Malabi-Dzhangi refrained from confirming whether charges would be brought against Ntshavheni but reiterated the principle of non-disclosure during ongoing investigations.
While Ntshavheni’s spokesperson, Sipho Mbele, cited her absence due to “sick leave,” the minister recently joined President Cyril Ramaphosa in Mozambique, raising questions about her availability to address the allegations.
Broader Implications
Ntshavheni, a trusted ally of President Ramaphosa, has been a key figure in his administration since March 2023, overseeing critical areas such as the State Security Agency and government communication. The investigation has cast a shadow over her political career and may have broader implications for the ANC, given her role in Ramaphosa’s 2017 presidential campaign.
The Ba-Phalaborwa Municipality scandal highlights the urgent need for accountability and transparency in public financial management. With the Hawks’ investigation now complete, all eyes are on the NPA’s decision and the potential ramifications for Minister Ntshavheni and her political future.
As South Africa grapples with corruption in public institutions, this case serves as a stark reminder of the importance of ethical governance in restoring public trust.
