Matjhabeng’s maladministration is highlighted by national treasury

The Matjhabeng Local Municipality, it would seem, is thwarting and blocking all attempts by the Free State administrator and his team to execute the financial recovery plan.

Political commentators in Matjhabeng say the municipality, under the political leadership of Thanduxolo Khalipha, is on the verge of financial collapse with little prospect of recovery.

Following the appointment of the administrator and his team, the municipal leadership has failed to cooperate and support the initiative, rendering the court order ineffective. An informed source says several letters addressed to both acting municipal managers since June 2025, requesting crucial information and implementation of financial recovery measures, have not been responded to and unheeded, resulting in team despondency and further delays in executing the court order.

At the special council meeting convened on Thursday, 4 September, the National Treasury’s Municipal Financial Recovery Services unit submitted a scathing report to the council, highlighting the maladministration prevalent in Matjhabeng. The findings revealed that irregular appointments, including the duplicate Expanded Public Works Programme (EPWP) unit in the mayor’s office, which led to over R10 million in unauthorised and wasteful expenditure, deprived residents of essential services.

In accordance with the Treasury’s instructions, the municipality is required to terminate the duplicate EPWP unit in the mayor’s office and all illicit contracts by the end of October. Furthermore, the Treasury has mandated a recruitment freeze for all new positions, excluding the Municipal Manager position, owing to the financial strain caused by the improper allocation of funds towards senior managers’ salaries that exceed the approved pay scales. A prompt skills audit and employee verification exercise is necessary to validate the presence of ghost workers.

Thomas Macungwane of the EFF in Matjhabeng, says they are not necessarily shocked by the revelations of the team. “We have been consistently saying that there is a serious lack of leadership in Matjhabeng; too much political interference, no willingness or commitment to correct the situation but rather everyone who comes in serves their narrow interests. If the ANC was an honest organisation, they should have removed this mayor a long time ago.”

He says this is a deliberate transgression of the code of conduct of councillors. “We as councillors have a fiduciary responsibility to protect public purse and use it to benefit the public. This is a clear scam to reward political allies of the mayor and his faction. It’s a total waste of money that could have maybe aided the collapsing service delivery. The former municipal manager and the director of cooperative service were legally obliged to advise against this and should have informed the MEC if the mayor was ignoring their advice. This money could have been used to assist in service delivery maybe it could have bought tar to seal potholes or fixed the dysfunctional sewer treatment plants. We have already submitted a written question to the acting municipal manager, which was answered, and we are now following up with a motion to council which seeks to undermine the unit and shut it down. We must ensure that all those involved pay back the money,” he says.

Maxie Badenhorst, DA councillor, says the DA in Matjhabeng is alarmed by revelations from the National Treasury that the municipality spent R14 million on an illegal EPWP unit and has blocked the Section 139 intervention team from accessing key financial documents.

“The DA has already raised questions in the Free State Legislature about irregular political appointments in the mayor’s office and will closely monitor the Financial Recovery Plan resolutions, which include halting unlawful appointments, terminating irregular contracts, and referring cases to the special investigating unit (SIU). Once again, it is the poorest and most vulnerable residents who are being denied opportunities and suffering the consequences of Matjhabeng’s mismanagement.

■Tshediso Tlali, spokesperson for the executive Mayor of Matjhabeng, did not respond to a media enquiry at the time of going to press.