Mail & Guardian
Mail & Guardian

Allegations of irregular appointment of a law firm and inflated legal bills rock a North West municipality

Matladi attributed the high legal fees to the costs associated with engaging senior counsel

Allegations of irregular appointment of a law firm and inflated legal bills rock a North West municipality

Cash-strapped Ramotshere Moiloa Local Municipality has exceeded its legal budget by more than R4.5 million, with total legal expenditure reaching R7 570 321.48 despite an allocation of only R3m. 

Municipal records further reveal that R4 754 429 of the amount was paid to K Matladi Inc, a Zeerust law firm, in less than six months. The law firm was first appointed in July 2025.

The municipal manager, Lekgetho Mokgatlhe, confirmed that the planned budget for the financial year amounted to only R3m.

“An allocated amount for legal matters per annum is about R3 million but could be adjusted in the first meeting of the year during the legislated period for budget adjustments if the budget is exhausted to deal with outstanding matters. An adjustment could be made for the outstanding legal matters to accommodate them,” Mokgatlhe said.

The ballooning legal bill followed the removal of the mayor, Dina Pitso, during a council meeting on 9 July 2025. In response, Pitso approached the North West High Court to urgently challenge her removal. However, the application was struck off the roll after the court found that the matter lacked urgency.

The R4.7m legal bill is linked to her removal. In one instance, K Matladi Inc was paid
R1 024 827.23 for acting as an intervening party in a matter between councillors Bento Cassanga and Kgomotso Ledikwa versus the North West MEC for the department of cooperative governance, traditional affairs and six others. The MEC failed in his bid to set aside the council sitting that removed Pitso as mayor.

Despite the failed legal attempts to reinstate Pitso as mayor and set aside the resolutions of 9 July 2025, the provincial government did not honour the resolutions and went on to recognise Pitso as the legitimate mayor.

Matladi attributed the high legal fees to the costs associated with engaging senior counsel.

“Any proper assessment of legal expenditure must therefore take into account the costs associated with senior counsel, junior counsel, court appearances, extensive preparation, legal opinions, consultations, drafting of pleadings, urgent applications, appeals and ongoing litigation management. These costs are inherent in complex litigation and cannot simply be characterised as inflated legal fees,” she said.

Insiders are alleging the irregular appointment of K Matladi Inc. The law firm is owned by Keitumetse Matladi. It is alleged that K Matladi Inc was not on the municipal database of lawyers and law firms used for all municipal legal matters. It is further alleged that the owner of the law firm shares a child with the mayor's driver, which influenced the decision to use her to siphon money from the municipality’s accounts.

“What informed the appointment when she was not on the municipality’s panel or database? The appointment of K Matladi Inc is the key issue. Legal practitioners who have been working with the municipality and are on the database were overlooked. There is a strong allegation that she has not subjected her legal bills to the taxation process. She must prove that she has complied with the taxation requirements regarding her expensive legal bills,” the insider said.

“There is also an allegation of a prior relationship with the mayor’s driver. They do have a child together but the issue is definitely not the child. The concern is the prior relationship with the mayor’s driver, who is obviously close to her and that raises questions too,” the insider added.

Matladi has dismissed all the allegations made against her.

“The allegation that K Matladi Inc inflated legal fees in cahoots with municipal officials is false, defamatory and unsupported by any factual foundation. Furthermore, the allegation demonstrates a misunderstanding of how litigation costs are determined and charged. High court litigation is governed by established legal principles, court rules, taxation procedures and prescribed tariffs. Any allegation of overcharging must identify the specific invoice, item, tariff provision, mandate, service-level agreement or charge alleged to be excessive,” she said.

Matladi dismissed claims that the father of her child played any role in securing the multimillion-rand legal appointment. 

“I regard this allegation as a low blow and an unjustified attack on my personal life. The paternity of my child is entirely irrelevant to my professional qualifications, competence, independence or the legal services rendered by my firm.”

“My professional achievements, expertise and reputation have been built through years of hard work and dedication to the legal profession. The fact that the father of my child may be employed by the municipality does not negate my professional standing, qualifications, experience or the legal work performed by my firm. Any suggestion to the contrary is both offensive and discriminatory,” she said.

Mokgatlhe dismissed the allegation that Matladi was not on the database.

“There is no improper undue relationship with K Matladi Inc. She is on our panel like any other law firm on the panel,” he said.

Kenneth Moeng Kgwadi is a political scientist, columnist and research fellow at MEARI.