The Democratic Alliance has laid criminal charges against two Eastern Cape municipal managers as part of a nationwide campaign targeting financial mismanagement in South Africa’s worst-performing municipalities.

George Michalakis, DA Parliamentary Leader, laid charges against Makana Municipal Manager Pumelelo Kate and Sundays River Valley Municipal Manager Thabiso Klaas at Grahamstown and Kirkwood police stations.

The charges are brought under Section 173(1) of the Municipal Finance Management Act, which holds municipal managers criminally liable for deliberate and grossly negligent financial mismanagement and reporting failures.

Kate, appointed in November 2022, and Klaas, who took office in January 2023, have both presided over municipalities that have received disclaimed audit findings for the past seven financial years. A disclaimed audit is the worst possible outcome, indicating poor record-keeping, weak financial controls and administrative instability.

“Mr Kate and Mr Klaas are not effectively turning the ship around, having been at the helm for considerable periods,” Michalakis said.

Residents in Makana still cannot drink tap water and must purchase drinking water due to previous detections of E.coli. Sundays River Valley, barring provincial intervention, is on the road to insolvency.

10 managers face charges nationwide

The Eastern Cape charges form part of a broader DA campaign announced on 13 August targeting 10 municipal managers across nine municipalities in South Africa.

The other targeted officials are:

In the Free State, the DA is pursuing charges against Majalefa Matlole (Masilonyana), Mokete Solomon Nhlapo (Nketoana), Mopedi Mohale (Mohokare), and Matthews Mofokeng and Futhulu Patrick Mothamaha (Maluti-A-Phofung).

In the North West, Olaotse Bojosinvane (Ditsobotla) and Olehile Allan Losaba (Ngaka Modiri Molema District Municipality) face charges.

In the Western Cape, the DA has laid charges against Advocate Dillo Sereo, Municipal Manager of Kannaland, despite him serving a cease and desist letter on the party in an attempt to stop the action.

Legal threats fail to deter DA

Sereo’s legal letter did not prevent the DA from proceeding with charges at Ladismith police station.

“The DA cannot and will not be prevented from fighting for better service delivery for the people of Kannaland by a municipal manager hiding behind legal letters,” Michalakis said.

Kannaland has received disclaimed audit opinions for the past four financial years. The municipality has no reliable water supply, with residents relying on water tankers for daily needs. A critical sewage plant project has stalled despite public money being spent.

The municipality is currently governed by a mayor from the ICOSA party who is a convicted rapist.

Financial mismanagement cited

The DA’s charges are based on findings from Auditor-General reports citing repeated disclaimed audit opinions and failures to implement audit recommendations.

In Masilonyana, despite receiving R111 million in equitable-share funding, the municipality failed to budget adequately for indigent households and received a decade of disclaimed audits.

Nketoana owes Eskom R883 million and allowed unrestricted access to financial systems, creating opportunities for fraud.

At Maluti-A-Phofung, one of the country’s worst-performing municipalities, officials failed to maintain proper accounting records. Former municipal manager Mothamaha was found personally liable for R4,6 million in an inflated water tanker contract.

Ditsobotla suffered nine years of audit failures and failed to budget for over 39 000 indigent households despite receiving R115 million in allocations.

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Elections offer chance for change

The DA said that the upcoming local government elections on 4 November offer voters an opportunity to change leadership in failing municipalities.

The ANC holds only a one-seat majority in Makana and can be brought below 50% in Sundays River Valley if voters demand change, according to Michalakis.

“Municipal mismanagement, from dirty water, sewage-filled streets, crater-sized potholes and landfills that cause contamination, can be failures of the past,” he said.

Section 173 of the Municipal Finance Management Act criminalises gross financial negligence, material accounting irregularities and providing false information to the Auditor-General. Penalties under Section 174 of the Act can include imprisonment.

ALSO READ: Kannaland Municipality: Western Cape’s worst-run council fails residents for third consecutive year