Withdrawal of CFO secondment for Free State official amid Gupta-linked fraud case
Image: Twitter / @SAPoliceService
The secondment of a senior Free State provincial government official among the accused in the R25 million fraud case involving Gupta-linked Nulane Investments as Maluti-a-Phofung Local Municipality acting chief financial officer (CFO) has been withdrawn.
Free State Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements MEC Saki Mokoena had initially seconded the department's deputy director-general responsible for its specialised support, advice, and intervention unit Seipati Silvia Dhlamini.
Earlier this month, Mokoena seconded Dhlamini as the municipality has been without a CFO for months after the contract of Matholase Mazinyo expired in March and was not renewed.
Free State Cogta and Human Settlements Department spokesperson, Zimasa Mbewu, said Mokoena has withdrawn the secondment of Dhlamini, and Thuso Ronald Marumo, formerly CFO of the Moqhaka Local Municipality in Kroonstad, has been seconded to be Maluti-A-Phofung acting CFO.
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Dhlamini is accused number three in the Nulane matter and was the CFO of the provincial Agriculture Department when the company was awarded the R25m contract to conduct due diligence and feasibility studies into the R334m Vrede Diary Farm Project, part of the broader Mohoma Mobung Programme, run by Indian company Estina on behalf of the department.
She has been charged with unlawfully and intentionally, and with common purpose, committing fraud.
In April 2023, the Free State High Court withdrew charges against Dhlamini and her co-accused, but last month, the Supreme Court of Appeal ordered they be retried for the same offences they were acquitted of as if they had not previously been arraigned, tried, and acquitted but provided that a different judge presides over the trial.
Dhlamini is charged with businessman Iqbal Sharma and his company Nulane Investments, former heads of the Free State Agriculture Department, Peter Thabethe and Limakatso Moorosi, Ronica Ragavan, who represented the fugitive Gupta family's Islandsite Investments, and Dinesh Patel, who is Sharma's brother-in-law and a Nulane Investments representative.
During a council meeting in April, assets manager Tsietsi Moremi was appointed acting CFO for a period of three months or until a new permanent CFO was appointed, whichever came first.
However, the following month, the council rescinded its resolution and delegated Malekula Melato, the controversial mayor of the troubled municipality, to request Mokoena to second a suitable person to act in the position until a suitable candidate has been appointed.
Even before the rescission of Moremi's temporary appointment, in April, Maluti-a-Phofung Municipal Manager Advocate Motsoahae Mofokeng then informed staff in a directive that all the powers of the CFO were recalled and now in his office.
'This is informed by the fact that certain due diligence processes have to be carried out before (the) letter of appointment is dispatched.
'All managers in the finance department should thus report directly to the municipal manager's office forthwith until the said acting CFO receives an appointment letter,' Mofokeng wrote on April 4.
In correspondence addressed to Melato dated July 10, Mokoena said he was only in a position to grant the request for a suitably skilled, competent, and qualified candidate in terms of Municipal System Amendment Act 03 of 2022, on such conditions as prescribed, to act in the advertised position until such time as a suitable candidate has been appointed.
Mokoena set out a number of conditions including a process plan with timelines on filling of the vacant post of CFO and a provision that all additional cost associated with the secondment such as compensation of the seconded official, an allowance and compensation while on secondment for subsistence and travel etc. are borne by the municipality.
Additionally, the secondment must be by agreement, which must stipulate the duration and party responsible for costs.
'The agreement must further include terms of reference, which outline that a person seconded must account to the municipal manager, report in writing at least once a month to the relevant seconding authority with regard to the key performance areas relevant to the position together with the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible,' demanded Mokoena.
He said he was seconding Dhlamini and requested Melato to engage Speaker Mandlenkosi Dlamini in order to convene a council meeting on the seconded candidate to allow council to consider the appointment of the seconded candidate and table the conditions for the position of CFO.
Mokoena also asked the municipality to forward a signed council resolution in terms of Municipal System Amendment Act appointing the seconded candidates to act in the relevant position after the secondment.
Melato was also asked to provide regular progress reports in writing to the relevant seconding authority with regard to the filling of the post and the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible.
Mofokeng did not respond to requests for comment.
loyiso.sidimba@inl.co.za
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A senior Free State provincial government official has had her secondment as the acting chief financial officer of the troubled Maluti-a-Phofung Local Municipality withdrawn as she is facing fraud charges relating to a R25 million contract awarded to the Gupta-linked Nulane Investments by the province's Agriculture Department. Image: Twitter / @SAPoliceService The secondment of a senior Free State provincial government official among the accused in the R25 million fraud case involving Gupta-linked Nulane Investments as Maluti-a-Phofung Local Municipality acting chief financial officer (CFO) has been withdrawn. Free State Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements MEC Saki Mokoena had initially seconded the department's deputy director-general responsible for its specialised support, advice, and intervention unit Seipati Silvia Dhlamini. Earlier this month, Mokoena seconded Dhlamini as the municipality has been without a CFO for months after the contract of Matholase Mazinyo expired in March and was not renewed. Free State Cogta and Human Settlements Department spokesperson, Zimasa Mbewu, said Mokoena has withdrawn the secondment of Dhlamini, and Thuso Ronald Marumo, formerly CFO of the Moqhaka Local Municipality in Kroonstad, has been seconded to be Maluti-A-Phofung acting CFO. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Advertisement Next Stay Close ✕ Ad loading Dhlamini is accused number three in the Nulane matter and was the CFO of the provincial Agriculture Department when the company was awarded the R25m contract to conduct due diligence and feasibility studies into the R334m Vrede Diary Farm Project, part of the broader Mohoma Mobung Programme, run by Indian company Estina on behalf of the department. She has been charged with unlawfully and intentionally, and with common purpose, committing fraud. In April 2023, the Free State High Court withdrew charges against Dhlamini and her co-accused, but last month, the Supreme Court of Appeal ordered they be retried for the same offences they were acquitted of as if they had not previously been arraigned, tried, and acquitted but provided that a different judge presides over the trial. Dhlamini is charged with businessman Iqbal Sharma and his company Nulane Investments, former heads of the Free State Agriculture Department, Peter Thabethe and Limakatso Moorosi, Ronica Ragavan, who represented the fugitive Gupta family's Islandsite Investments, and Dinesh Patel, who is Sharma's brother-in-law and a Nulane Investments representative. During a council meeting in April, assets manager Tsietsi Moremi was appointed acting CFO for a period of three months or until a new permanent CFO was appointed, whichever came first. However, the following month, the council rescinded its resolution and delegated Malekula Melato, the controversial mayor of the troubled municipality, to request Mokoena to second a suitable person to act in the position until a suitable candidate has been appointed. 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Mokoena set out a number of conditions including a process plan with timelines on filling of the vacant post of CFO and a provision that all additional cost associated with the secondment such as compensation of the seconded official, an allowance and compensation while on secondment for subsistence and travel etc. are borne by the municipality. Additionally, the secondment must be by agreement, which must stipulate the duration and party responsible for costs. 'The agreement must further include terms of reference, which outline that a person seconded must account to the municipal manager, report in writing at least once a month to the relevant seconding authority with regard to the key performance areas relevant to the position together with the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible,' demanded Mokoena. 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