The Chairperson of the Select Committee on Cooperative Governance and Public Administration, Mr Mxolisi Kaunda, has called on municipalities to develop early warning systems and strengthen their internal controls to detect and prevent fraud and corruption.
Reacting to a briefing from the Western Cape provincial Department of Cooperative Governance and Traditional Affairs (COGTA) on a section 106 forensic investigation into Bitou Local Municipality, Mr Kaunda said the absence of early warning systems and weak internal controls to prevent incidents of fraud and corruption is a worrying factor.
“COGTA in the province must support municipalities to put in place early warning systems so we do not have a recurrence of incidents of fraud and corruption, and the recruitment of people with a dark cloud,” Mr Kaunda said.
The province initiated the section 106 investigation following a tip-off by a whistleblower alleging corruption and fraud in the municipality. The tip-off also implicated senior officials and some councillors in violations of the code of conduct and supply chain management policies.
Provincial COGTA official Ms Deidre Vijjoen told the select committee that the forensic investigation at municipality started in December 2017. During the early stages of the investigation, investigators identified additional serious issues of maladministration and mismanagement that warranted further investigation. Thereafter the MEC initiated the section 106 investigation.
The allegations included conflict of interest and municipal officials and councillors who failed to declare their business interests, which contravenes the code of conduct and the supply chain management policies. There was also a matter of dishonesty regarding the appointment of an official who had been dismissed from another municipality in the Eastern Cape for misconduct.
The committee noted the department’s move to lay charges with the police, refer matters to the Auditor-General and internal disciplinary processes. However, committee members raised concerns about the duration of the investigations and that some of the implicated officials are no longer employed at the municipality.
“The disciplinary guidelines and regulations must be followed. Council is required to approve the extension of the investigation. We don’t want a situation where the accused win in court based on the constitutional principle of justice delayed is justice denied. We must ascertain that the municipality and the department are not found to have breached the legislative framework on what must be done,” warned the committee Chairperson.
Section 106 of the Local Government: Municipal Systems Act gives the MEC for local government the power to investigate a municipality if they believe maladministration, corruption, fraud or a failure to perform statutory obligations is occurring. The MEC can either request information from the municipality in writing or appoint an investigator to conduct an inquiry.
The select committee deferred briefings from the KwaZulu-Natal COGTA department on the termination of section 139 interventions in uThukela District Municipality, UMKhanyakude District Municipality and uMzinyathi District Municipality because the MEC and department are occupied responding to the flood disaster in the province.
Sakhile Mokoena
25 November 2025
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