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Calls for accountability following R16 million fleet management scandal in Emfuleni

Karabo Ngoepe|Published

ANC Sedibeng Regional Secretary Jason Mkhwane.

Image: Facebook

The African National Congress (ANC) in Sedibeng has called for urgent disciplinary and criminal action following the release of a forensic report that uncovered widespread irregularities in fleet management at the Emfuleni Local Municipality.

The report, which details administrative failures and weak internal controls, found that the municipality suffered financial losses exceeding R16 million due to mismanagement of assets, including missing vehicles and irregular transactions.

ANC Sedibeng regional secretary Jason Mkhwane said the party viewed the findings “with the seriousness they deserve,” acknowledging its responsibility as the leading partner in the coalition government.

“The report confirms that there were significant administrative failures, weak internal controls, and irregular conduct involving both municipal officials and external service providers,” Mkhwane said.

The forensic investigation implicates several municipal officials as well as private contractors alleged to have benefited from irregular conduct. Companies named in the report include Emerald Panel Beaters, Tec Auto, Twin City/Auto Perfect, Vaal Business Cooperation, Maboela Forestry and Construction, and Botha’s Towing.

The ANC said the findings point to systemic governance failures that allowed abuse of municipal resources to persist.

“These failures resulted in the mismanagement of municipal assets, including missing vehicles, irregular transactions, and significant financial losses,” Mkhwane said.

The party has demanded the immediate implementation of the report’s recommendations, including disciplinary action against implicated officials and legal action against those found to have acted unlawfully.

“There must be no protection of wrongdoing. Accountability must be applied consistently and without fear or favour,” Mkhwane said.

The ANC further called for:

  • The institution of criminal and civil proceedings against individuals and entities involved
  • Recovery of all financial losses incurred by the municipality
  • Strengthening of internal controls, including improved asset tracking systems
  • Regular oversight reporting to council to ensure transparency

The findings add to mounting scrutiny over governance and financial management in Emfuleni, which has faced persistent challenges related to service delivery, infrastructure collapse and administrative instability.

Recent reports have highlighted ongoing issues with water supply, electricity outages and deteriorating roads, raising concerns about the municipality’s ability to effectively manage public resources. Sources within the municipality have revealed that processes have already started to deal with the individuals involved in the tender.

“The municipality has already started disciplinary processes, but it is facing a challenge because many of the people have resigned and left the employ of the municipality. They have also been instructed to open cases against the people,” the source said.

A forensic report has revealed that the Emfuleni Local Municipality in 2022 spent R8.7m to purchase six trucks that were never delivered despite invoices being signed and stamped confirming receipt of the vehicles.

The municipality also purchased eight Toyota Hilux bakkies at a cost of R525,607 each, amounting to R4.2m. The report said that out of the eight Toyota Hilux bakkies procured, only three were confirmed delivered and five were still outstanding.

The report found that only three bakkies were delivered, but just one could be accounted for. The investigation further found that the fleet manager signed invoices certifying delivery, while the assistant fleet manager signed as the receiver despite knowing the vehicles had not been delivered.

Emfuleni Local Municipality is under investigation after documents revealed that trucks and bakkies paid for through a National Treasury contract were allegedly never delivered, while graders purchased for municipal work broke down soon after arrival.

Image: Simphiwe Mbokazi / Independent Newspapers

Municipal spokesperson, Makhosonke Sangweni, confirmed that action was being taken against those implicated in the tender. He said in line with their commitment to good governance, transparency, and accountability, the Council and administration initiated a forensic investigation following the identification of irregular expenditure totalling approximately R16 million during the 2023/24 financial year audit process.

“The forensic investigation has uncovered gross mismanagement relating to the assets’ verification, acquisitions, maintenance and insurance. The investigator has specifically identified irregularities and recommended criminal investigations, disciplinary action against implicated employees, civil litigation/recovery, and blacklisting of implicated service providers (directors and companies),” he said.

Sangweni added that actions will be taken without fear or favour against those implicated, which includes opening of criminal cases, disciplinary actions against implicated employees, blacklisting of companies and their directors, as well as civil recovery of prejudice suffered by the municipality in terms of the report’s recommendations.

“On account of all findings submitted, Council has resolved that ELM must open a criminal conduct case against the identified perpetrators as prima facie evidence exists. Accordingly, at this stage, we opt to reserve our right to comment on the merits of the case, as we strongly believe the justice system will be capable of prosecuting its responsibilities of justice and provide decisive accountability to the people of ELM,” he said.

Sangweni added that the municipality remains fully cooperative with oversight bodies and will provide regular, factual updates as significant milestones are reached. He said a detailed summary of findings and management’s response will be made public once the matter is concluded and Council has considered the report.

The fleet management scandal is the latest in a series of governance failures that have placed the municipality under pressure from both political parties and residents.

Mkhwane said the ANC-led coalition sees the report as an opportunity to reset governance standards and rebuild public trust.

“The findings of this report must serve as a turning point in rebuilding institutional discipline and public trust,” he said.

“The people of Emfuleni deserve a municipality that works, and we will not allow administrative failure to undermine that responsibility.”

karabo.ngoepe@inl.co.za