ANC ‘lies’ exposed in R1.3 billion corruption cover-up

The ANC in Johannesburg allegedly lied about the cover-up of R1.3 billion lost to “corruption”, and claims of widespread nepotism, as part of the party’s “capture” of the city’s beleaguered entities. 

On Tuesday, the ANC’s Johannesburg regional secretary, Sasabona Manganye, insisted that neither the REC, the regional working committee nor regional office bearers had met on 2 July — as reported by the Mail & Guardian — to discuss, among other things, an investigation into Manganye’s alleged influence in the filling of Johannesburg Water’s chief operations officer position. 

The post comes with an annual salary of R2.6 million.  

“There was never any meeting,” Manganye said, adding that the news report served this publication’s “interest to publish propaganda”.

But documents obtained by the M&G show that an regional executive committee (REC) meeting was indeed held on 2 July — following gatherings in February and May — where senior party leaders agitated for an inquiry into Manganye’s alleged interference in the appointment of senior executives at city-owned entities. 

Furthermore, highly placed Johannesburg sources alleged that the “cover-up” of the R1.3 billion corruption at waste-management firm Pikitup, the alleged influencing of the Johannesburg Water executive position and the employment of politically connected relatives to general worker posts was “a sign that the ANC regional leadership had captured city entities”. 

“With the regional chairperson [Dada Morero] assuming the mayoral chain, I think we can expect the party to continue covering [up] corruption and placing their people in key positions,” said an insider, who asked to remain anonymous. 

“Basically, it will be a new mayor coming in, but the same old rubbish will continue.”

Morero, who held the finance mayoral committee post, is set to succeed Kabelo Gwamanda, who resigned on Tuesday, the eighth change in mayor since December 2019. 

The ANC’s latest claims come in the wake of its REC — the ANC’s highest structure in Johannesburg — sending members to become board chairpersons of municipal entities. 

The new chairs are Makhosini Kharodi at City Power, Bruce Serala at Johannesburg Water, Julius Maputla at the Johannesburg Development Agency, Simon Motha at the Johannesburg Property Company and Nandipha Zonela at Johannesburg Tourism. 

Manganye’s denial of the 2 July meeting came at an ANC briefing after Gwamanda’s resignation. 

His comments followed a series of articles revealing that Gugulethu Phakathi — at the alleged urging of the regional secretary — was primed to be appointed as the water entity’s chief operations officer after the original job advert was purportedly tweaked to match his qualifications. 

This was done because Phakathi did not meet the academic requirements when the vacant post was first advertised in December.

In addition to the M&G having seen an REC meeting document, dated 27 June and sent from the regional secretary’s office, detailing the agenda for a gathering at the Houghton Hotel, several REC sources said some members were not available on 27 June, which resulted in the meeting being held on 2 July. 

“Sasabona [Manganye] keeps denying that there was a 2 July REC meeting. But he is blatantly lying because there is an agenda document proving that we met at the Houghton Hotel,” said one well-placed source, who also asked to remain anonymous. 

Moreover, Maxwell Nedzamba — the ANC’s regional treasurer and the chairperson of the city-owned firm Pikitup — confirmed during the Tuesday press briefing that Johannesburg officials were investigating his involvement in alleged nepotism regarding the hiring of 300 general workers for the entity. 

On 26 July, the M&G reported that three of Nedzamba’s blood relatives were among the 300 general workers appointed to Pikitup in February, despite not being on the list of 17 073 people who applied for the post. 

Litshani Matsila — the waste company’s chief financial officer, has a sibling appointed as a general worker. The relative was appointed without applying for the position.

Matsila is implicated in a forensic report for being “grossly dishonest” in losing about R1.3  billion through “fraud and corruption”.

On Tuesday, Nedzamba said his wife was the only family member employed by the city, saying he had met her only after her employment in Johannesburg. 

“The role of the chair of the board is to deal with the executive [management] and oversight [of the entity]. The issue of employment of general workers, that is the responsibility of the officials of the city,” he said. 

City of Johannesburg spokesperson Nthatisi Modingoane said the Pikitup investigation was “ongoing and at an advanced stage”. 

“The estimated time of completion is mid-September 2024. Upon completion, the report will be processed through all council processes before it can be made public,” Modingoane told the M&G.  

The governance struggles in the city have played out as Johannesburg Water’s 2022-23 financial report showed the entity was owed more than R602.9 million by Gauteng government departments, and other state entities, as of 30 June last year. The company is also saddled with irregular expenditure of R2.1 billion, up from R418 million in the 2017-18 reporting period.

The M&G established from several REC sources that Manganye and Loyiso Masuku, the deputy regional secretary, were lobbying senior ANC members for Masuku, rather than Moreoro, to succeed Gwamanda. 

But, on Tuesday, Manganye dismissed the notion that he and Masuku were dividing the party in the Johannesburg region as gossip.

He said if he was to be involved in anything divisive as the regional secretary, he would be acting against those who elected the leadership.

“Where do those rumours come from, where is the source? 

“When you say people are divisive, what is it that they are doing that demonstrates that they are divisive?” Manganye asked. 

Morero has the backing of President Cyril Ramaphosa, who said last year he believed he had the necessary grasp of local government to do the job of mayor. 

This week Manganye said the president was aware of the decision to endorse Morero as mayor.

“The president is part of the national officials of the ANC — when the decision was taken for comrade Dada Morero to become a mayoral candidate, the president was aware of that decision.”

He denied that there were people in the REC who felt that Ramaphosa had campaigned for, and endorsed Morero, making it difficult for others to challenge him for the mayoral position. “If he wants to speak about Joburg, and it happens he mentions Dada Morero, it’s not out of lobbying, it is out of appreciation that there was a process and that process confirmed him, hence he was elected,” Manganye said.

“The regional chairperson, apart from being a mayoral candidate — he is the political head of the ANC in Johannesburg. 

“The reference will time and again be made on him because we understand we are all led by him as the regional executive committee.”