THE alleged appointment of the new chief financial officer (CFO) at Emalahleni Local Municipality in the Eastern Cape has been met with criticism and dissatisfaction.
A group of concerned citizens said the appointment was irregular and illegal.
The group said their investigation revealed that the new CFO, Busisiwe Lubelwana, was implicated in a scandal involving the irregular appointment of a R25 million contract at the Buffalo City Metropolitan Development Agency (BCMDA).
They claim that the screening company responsible for screening Lubelwana’s application ignored the red flags raised by her involvement in the BCMDA scandal.
Lubelwana, who joined the agency in August 2023, resigned in November.
The group said she resigned with immediate effect amidst investigations into her conduct.
Emalahleni Local Municipality spokesperson Luthando Nqumkana said Emalahleni does not want to be drawn into responding to this as it is a matter that involves another institution. He said the institution mentioned in the allegations was better placed to respond.
“We cannot respond on behalf of the CFO as this is her personal matter,” said Nqumkana, adding that the municipality was not aware of the allegation, as this was the issue that involves her and her former employer.
He added that the municipality was never advised of any red flags by the vetting entity that has been utilised for the past three years.
BCMDA spokesperson Nomkitha Zokufa said the allegations were true, adding that Lubelwana was not implicated in any scandal of irregularities. She said there were no investigations taking place against Lubelwana.
“We understand that every individual has a right in pursuing their career goals, and as such, Lubelwana is advancing her career,’’ Zokufa said.
Emalahleni, the ANC-led municipality, was formed in December 200 after the first local government elections to form the municipality's three transitional local councils (TLCs) merged. They are Dordrecht, Indwe, and Lady Frere (Cacadu).
The municipality falls under the jurisdiction of the Chris Hani District Municipality and is situated in the north-east region of the Eastern Cape.
The seat of the municipality is Lady Frere. The municipal area extends over an area of approximately 3 840 square kilometres, includes more than 200 rural villages, and comprises sixteen wards. This consists of private farms in the northern area of the municipality, south of Dordrecht and north of Indwe.
The citizens said their concerns were compounded by the fact the regional leadership of the ANC appeared to be involved in this matter, with suggestions that they may be seeking to benefit from tender irregularities.
“We fear that the municipality may be exposed to further corruption and looting if this appointment is allowed to stand,” read the concern letter.
In February 2022, Corruption Watch reported that there were some officials who were implicated in costing the municipality millions of rands in irregular and non-existent contracts.
The former municipal manager was also implicated in irregular expenditures of close to R60 million for 2014/2015.
A probe into dealings of the municipality by the cooperative governance and traditional affairs (Cogta) found the irregular appointment of employees, nepotism, procurement irregularities, irregular expenditure, and incomplete infrastructure projects in 2018.
The group also called for immediate intervention from the National Treasury, Public Protector, Auditor-General, and other relevant authorities to ensure that the municipality is not compromised by Lubelwana’s appointment.
The group claimed that the company responsible for vetting candidates in Emalahleni has been accused of being captured and ignoring red flags regarding Lubelwana’s past. They said the appointment was seemingly compromised.
“The municipality's appointment form requires candidates to disclose any pending cases from previous employers, including those related to corruption. Lubelwana's failure to disclose her questionable past may be seen as a violation of this requirement,” the group said.
The group said the laws broken in this alleged appointment include:
- The Municipal Systems Act (2000):
- Regulations on Appointment and Conditions of Employment of Senior Managers (2014):
- The Municipal Finance Management Act (2003):
“We demand that the Emalahleni Local Municipality take immediate action to rectify this unlawful appointment. We call for the appointment to be rescinded and for a new, transparent, and fair process to be undertaken to fill the position of CFO,” the group said.