Johannesburg Development Agency CEO still at work after arrest and charges

Despite facing criminal charges, being arrested and released on R50,000 bail, Themba Mathibe, chief executive officer of the Johannesburg Development Agency (JDA), remains in his post, with the City of Johannesburg insisting that governance processes are being followed and that operations continue uninterrupted.

According to city spokesperson Nthatisi Modingoane, there has been no interruption in the agency’s work, no suspension of projects and no basis, at this stage, to alter existing leadership arrangements. He said employment and governance processes had to be allowed to run their course, separate from the criminal justice process.

Modingoane confirmed that Mathibe remained the substantive CEO of the JDA and continued to perform his delegated functions. His acting appointment at the Johannesburg Social Housing Company (Joscho) ended on 31 January, and the entity was operating under its existing governance structures.

Read more: Joburg Development Agency boss arrested with ‘substantial’ amounts of cash

The city rejected claims that Mathibe received dual salaries while holding leadership roles at both entities and said there were no adverse findings against him by the Auditor-General or through internal audit processes.

Law-enforcement authorities have said money laundering charges against Mathibe arise from an investigation into alleged procurement irregularities and that further investigations are continuing. The city has emphasised that the criminal process runs on a separate track from municipal employment and governance decisions.

The Democratic Alliance has criticised the city’s decision to keep Mathibe in his post while the criminal case proceeds. Daniel Schay, the DA’s shadow MMC for development planning, said the city’s stance raised concerns about judgment and risk management at a key municipal entity.

Schay said that while the presumption of innocence applied, retaining an arrested and charged CEO at the helm of the JDA undermined public confidence and warranted clearer justification and transparency from the shareholder.

Appointment controversy predates arrest

The city’s position has revived debate around Mathibe’s original appointment, a controversy that predates his arrest by several months and is formally unrelated to the criminal charges he now faces. In June 2024, the DA objected to his appointment as JDA CEO, raising concerns about transparency, merit-based selection and political influence.

Those objections were led by Schay. At the time, Schay said the appointment process appeared opaque and inconsistent with the intent of Section 71B(1) of the Municipal Systems Amendment Act, which was introduced to professionalise senior municipal appointments.

He said Mathibe’s appointment was first announced via a now-deleted African National Congress Youth League social media post, before any formal communication to the council or the Development Planning Section 79 Committee. Schay also questioned the unexplained removal of the previous JDA CEO.

Central to the DA’s criticism was the issue of experience requirements, with Mathibe being 28 years old at the time of his appointment.

“The original requirement for the position was 10 years’ experience, which Mathibe would not have met, given his age. The JDA board unilaterally reduced the minimum requirement for the CEO position to five years during the appointment process,” Schay said, adding that he had formally requested the relevant board minutes and resolutions to establish when and why the requirement was altered, but that no documentation had been provided.

“Those concerns are now resurfacing after the arrest, and we want answers,” he said.

The city has consistently rejected the DA’s claims, maintaining that the appointment process was lawful, that the board acted within its delegated authority and that performance at the JDA had improved under Mathibe’s leadership.

It has cited progress on previously stalled projects, improved key performance indicator outcomes and a reduction in audit findings as evidence that continuity was justified.

Daily Maverick attempted to contact Mathibe for comment on Monday. His response will be added if received.

Joshco context

The governance debate has been further complicated by developments at Joscho, where Mathibe previously served as chief operating officer and later as acting CEO. Joscho has faced scrutiny in recent years, including a forensic investigation into a fraudulent payment for a boundary wall at an old-age home that was never built.

While Mathibe has not been accused of orchestrating that fraud, documents from the former MMC for Human Settlements recorded concerns about senior-level conduct and the risk of interference in the investigation during the period he was part of the entity’s executive leadership.

Read more: How Joburg paid almost R1m for an old-age home wall that never existed

Mathibe was arrested at his home by members of the South African Police Service last week during a search-and-seizure operation linked to an investigation into alleged procurement irregularities.

He was later released on R50,000 bail after his appearance in the Alexandra Magistrates’ Court. It is alleged he had a substantial amount of cash in his possession. DM