Municipal officials frequently resign before investigations into corruption and fraud can be concluded, says the Western Cape department of local government. On Tuesday 9 March, the department briefed the provincial legislature on section 106 investigations in the province.

A section 106 investigation takes place when the MEC for local government either instructs a municipal manager to provide information, or designates another party to investigate whether maladministration, fraud, corruption or serious malpractices have occurred or are occurring in any given municipality.

Four section 106 investigations have been initiated or already finalised in the Western Cape:

• Bitou Municipality: An investigation report was given to the municipality in 2019. Gary Birch, the department’s director for specialised support, told the legislature’s local government oversight committee that a law firm had been tasked with developing a plan to respond to the provincial government’s report. A copy of the report was given to the Hawks and a progress report is expected soon.
• George Municipality: An investigation report was provided to the municipality in early 2020. Copies of the report were handed to the Hawks and those implicated appeared in court in October 2020. Another investigation that began in 2020 is ongoing.
• Central Karoo District Municipality: An investigation has been completed and its findings handed to the municipality. According to Birch, the acting municipal manager has provided updates. Copies of the report have been handed to the Hawks.
• Matzikama Municipality: An investigation was started in September 2020. Birch said the municipality refused to provide independent investigators with documents or allow officials to be interviewed. This resulted in a criminal case being opened. Following a court application by the municipality to suspend the appointment of investigators, MEC Anton Bredell brought a counter-application that required the municipality and its officials to comply with the investigation. The municipality has abandoned the interim relief and now seeks to review and set aside Bredell’s decision to appoint independent section 106 investigators. The case was heard on 1 March 2021, with judgment being reserved.

Birch said there were problems in municipalities with the implementation of section 106 reports. Only the Central Karoo District Municipality resolved to adopt the findings and implement recommendations.

The issue is compounded by councillors and mayors, who are implicated in reports, failing to attend council meetings. This prevents councils from having a quorum to vote on items.

Another problem is municipal managers, who are implicated with other officials, resigning before disciplinary proceedings can be finalised and then being re-employed at other municipalities.

Knysna’s chief financial officer, Mbulelo Memani, resigned for the second time in October 2020, following two separate allegations of financial misconduct.

Previously, Memani resigned from the municipality in May 2020 in a dramatic council sitting (see below). However, in October Memani’s name cropped up again —this time in Clanwilliam in Cederberg Municipality, when residents protested against Memani’s appointment as the municipality’s financial manager.

Another official, Dr Michelle Gratz, a former acting municipal manager of Knysna, stands accused by the local ratepayers’ association of illegally writing off millions in irregular expenditure. Gratz resigned from her post in a council sitting in May 2020, during which Memani and DA councillor Peter Myers also resigned.

Gratz cited family reasons for leaving, but also said the municipality was “broken”. Then, in January 2021, Gratz was confirmed as the acting municipal manager for the nearby George Municipality. This move was condemned by GOOD, which has one seat on the council. The party’s Brett Herron labelled this as “cadre deployment” by the Democratic Alliance.

Birch said copies of investigative reports are sent to the National Council of Provinces, the MECs responsible for cooperative governance and finance and the South African Local Government Association (Salga).

If criminal offences are identified in reports, copies are given to the Hawks and the National Prosecuting Authority.

But while committee members welcomed the details of the status of investigations, one member, Andricus van der Westhuizen, wanted to know more about the original complaints that sparked the need for investigations. The department, however, was reluctant to provide finer details of investigations on a public platform.

Local government departmental head, Graham Paulse, said members should “tread cautiously” around the discussion as some matters were before councils, others had disciplinary charges instituted against them and cases were at the criminal investigation stage with the Hawks and other law enforcement agencies.

Paulse said he would feel more comfortable talking about the investigations in a closed session of the legislature. The department said it would provide the committee with copies of the investigations so far. DM