ActionSA calls for administration after a senior official, Sam Makhubu, at the Maluti-A-Phofung Local Municipality in the Free State allegedly unlawfully signed an R27 million acknowledgment of debt to a company owned by his cousin.
Last week, Pretoria News reported that Sam Makhubu signed a deal in 2023 with Kill Crime Security Services, a company owned by his cousin, Thabiso Sekhosana.
ActionSA said this exposed the deep-rooted corruption crippling service delivery.
In a statement, ActionSA Free State chairperson Patricia Kopane slammed the Municipal Public Accounts Committee (MPAC) for failing in their duty to see the tender deals, allowing corruption to flourish unchecked.
“Maluti-A-Phofung must be placed under administration or dissolved entirely, as it has proven incapable of fulfilling its constitutional mandate.
“The municipality’s financial collapse is further evidenced by its staggering Eskom debt of R8 billion as of July last year, jeopardising electricity supply and worsening service delivery. The recent scandal involving Makhubu and Sekhosana highlights blatant abuse of power,” she said.
The Free State High Court declared their agreements and the R27 million acknowledgment of debt as constitutionally invalid.
According to Kopane, the court’s ruling exposed a deliberate scheme to exploit municipal resources, with both individuals effectively “capturing” the municipality.
On Tuesday, the municipality's spokesperson, Thabo Khessah, informed the newspaper that they could only confirm that the matter is currently under review by the municipal manager, Advocate Motsoahae Mofokeng, and is receiving urgent attention.
The municipality maintained that the then-acting municipal manager was not authorised to conclude the acknowledgment of debt as he was grossly conflicted at the time. This is because he and Sekhosana are cousins, as their mothers are sisters.
The two parties formalised two service-level agreements, one in August 2020 for the provision of security services, and another in December 2022.
Kopane further called on the national government to step in, place Maluti-A-Phofung under administration, and hold those responsible to account.
“The people deserve better than a municipality hijacked by corruption. It is time to restore good governance and ensure municipal funds serve the community, not the politically connected elite,” Kopane added.
In its defence, Kill Crime Security Service maintained that the municipality always followed its procurement policy when entering into contracts.