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The Gazette

Matlosana Municipal Manager Effects Dismissal of CFO Following Disciplinary Verdict

The City of Matlosana Local Municipality has officially terminated the employment of its Chief Financial Officer (CFO), Mercy Maebe Phetla. The dismissal was confirmed by Municipal Manager Lesego Seametso on Friday, January 23, 2026, marking the end of a high-profile disciplinary process that has dominated the municipality's administrative agenda for months.


Image: The Go- To Guy Creations
Image: The Go- To Guy Creations

The termination follows the recommendations of a disciplinary hearing presided over by Advocate S. Sethene. The inquiry found Phetla guilty on five counts of gross misconduct, dishonesty, and dereliction of duty, characterized in the final report as "calculated acts" rather than procedural negligence.


Administrative Action Following Council Disruption


The decision to effect the dismissal administratively came after a full council sitting on Wednesday, January 21, collapsed before a resolution could be reached. The meeting, intended to note the disciplinary sanction, descended into procedural deadlock within the ANC caucus.


During the sitting, Council Speaker Stella Mondlane-Ngwenya and Single Whip Rose Thabanchu raised objections, suggesting that certain charges had not received prior council approval. Thabanchu specifically cited "Section 10", a reference that remained legally unclarified during the session, to argue against the immediate implementation of the sanction.


Following the abrupt closure of the meeting by the Speaker, the Presiding Officer, Advocate Sethene, reportedly declined a request to report directly to the council, maintaining that the disciplinary process falls strictly under the administrative jurisdiction of the Municipal Manager rather than the legislative oversight of the council.


Summary of Findings


The investigation into Phetla’s conduct uncovered a series of financial irregularities that have placed the municipality’s fiscal health under strain. Key findings include:

  • Ghost Deliveries: Authorization of a R2.9 million payment to Variegated (Pty) Ltd for electrical materials that investigators confirmed were never delivered.

  • Gratuitous Gifts: Failure to declare a R1.4 million luxury vehicle allegedly received from a municipal service provider.

  • Unauthorized Payments: The processing of approximately R20 million to a select group of creditors within a 24-hour window without the required approval from the Accounting Officer.

  • Service Irregularities: Total payments exceeding R6 million for services that were either unrendered or billed through duplicate and triplicate invoices.


Procedural Conclusion


Despite the political impasse during the council session, Municipal Manager Lesego Seametso moved to finalize the matter early Friday morning. In a formal communication, Seametso noted that the dismissal had been served to the CFO via email, effectively concluding Phetla's tenure at the municipality.


The termination of the CFO occurs at a critical juncture for Matlosana, which remains under mandatory provincial intervention. The removal of the head of finance is seen as a significant step in the administration’s efforts to address the governance and credibility challenges that have hindered service delivery in the region.


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