Matlosana Municipal Workers Down Tools Over Suspensions Linked to Fraud Scandal

Workers Protest “Unfair Suspension” of Finance Officials

Operations at the City of Matlosana Local Municipality came to a standstill on Monday, 20 October 2025, after municipal workers embarked on a strike to protest what they described as the unfair suspension of two employees in the finance department. The protest disrupted core financial services, including the processing of invoices, payroll management, and budget-related activities.

The suspensions, issued by Municipal Manager Lesego Seametso, involved Sibusiso Sekoati, a clerk in the expenditure division, and Raymond Serame, a senior clerk. The pair stand accused of processing a fraudulent duplicate payment of R826,563.90 to a company called Gold Heart Trading on 6 October 2025.

However, municipal employees claim that the suspensions were unjust, alleging that Seametso herself approved both payments and is now using junior officials as scapegoats for irregularities within the department.

Background: Duplicate Payment Sparks Controversy

The controversy stems from two payments made to Gold Heart Trading, owned by businessman Khumoeng Kemiso, who also owns The Pearl Klerksdorp. According to City Press, both transactions, totaling more than R1.6 million, were authorised for identical services related to multifunctional copier costs between November 2023 and January 2024.

The initial payment, approved on 29 April 2024, reportedly bypassed a provincial oversight step required under the municipality’s financial recovery plan. This process mandates that all large municipal payments undergo scrutiny by the Provincial Executive Representative (PER) before release. Seametso allegedly sent the payment documents directly to the expenditure section instead, allowing the funds to be disbursed prematurely.

How the Payment Was Processed

Documents obtained by the publication outline the transaction trail:

• Clerk Sibusiso Sekoati captured and authorised invoice 0221, dated 26 January 2024.

• Senior clerk Raymond Serame verified the transaction.

• Expenditure manager Jan Letlhoo approved it.

• A system-generated form, HI730, was created and signed as part of the payment documentation.

• The payment of R826,563.90 was made and recorded under electronic filing number 43219.

Days later, the same documents were submitted to the Provincial Executive Representative, this time excluding the HI730 form, effectively obscuring the duplicate payment. The PER then gave post-facto concurrence on 3 May 2024, unaware that a prior payment had already been made.

Allegations of Irregular Conduct

The report claims that both payments were approved by Seametso, raising suspicions of collusion and procedural manipulation. Insiders allege that documentation was deliberately altered to facilitate the second transaction. No evidence of recovery for the irregular expenditure has been disclosed in the municipality’s financial statements, deepening concerns about transparency and accountability.

Moreover, the close relationship between Seametso and Kemiso, the owner of the benefitting company, has intensified scrutiny. Workers have accused the Municipal Manager of shielding politically connected individuals while punishing junior employees for systemic failures.

Workers’ Response and Continuing Strike

As of Tuesday, 21 October 2025, employees from the treasury department continued their strike, demanding the immediate reinstatement of the suspended officials and a transparent investigation into the duplicate payment scandal.

According to sources within the municipality, workers held a sit-in protest outside the finance department offices, insisting that no operations will resume until management provides clarity on the issue. “We are standing up against corruption and unfair treatment,” said one employee who spoke anonymously. “The wrong people are being punished while those in charge walk free.”

The strike has paralysed financial operations across the municipality, with reports indicating that key administrative tasks such as salary processing and supplier payments remain on hold.

Management Silent Amid Mounting Pressure

At the time of publication, neither Municipal Manager Lesego Seametso nor Gold Heart Trading owner Khumoeng Kemiso had issued a formal response to the allegations. Both individuals have been linked to prior controversies involving irregular municipal transactions, further fueling public concern about governance within the City of Matlosana.

Community leaders and civic organizations have called for an independent forensic audit into the municipality’s financial practices, warning that unchecked irregularities could deepen Matlosana’s already fragile fiscal situation.

A Municipality Under Strain

The City of Matlosana has long faced financial distress, operating under a provincial recovery plan meant to curb unauthorised expenditure and stabilize its budget. However, recurring allegations of corruption and poor oversight continue to hinder progress.

Residents, frustrated by delayed services and repeated scandals, are demanding decisive action to restore accountability. “The people of Matlosana deserve transparency,” said a representative from a local ratepayers’ association. “The culture of impunity must end.”

Looking Ahead

As tensions rise, attention now turns to the outcome of the scheduled meeting between striking workers and Municipal Manager Seametso. Whether the suspensions will be lifted or the investigation intensified remains uncertain, but what is clear is that this latest episode has further eroded public trust in municipal governance.

For now, the treasury department’s doors remain closed, symbolic of a deeper crisis within one of the North West’s most troubled municipalities.

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