Executive Mayor Ald. Xhakaza shields fraud accused by lying to council

Issued by Cllr Lucky Dinake – DA City of Ekurhuleni Caucus Chief Whip
04 Nov 2024 in Press Statements

City of Ekurhuleni Executive Mayor, Ald. Nkosindiphile Xhakaza has blatantly lied to Council and showed total disrespect and disdain to residents of the city to shield a senior city official implicated in fraud.

The Annual Financial Statements and Report of the Auditor General for the 2020/2021 Financial Year highlighted irregular expenditure of R179,550 paid as board fees to a member of the Board of the Ekurhuleni Housing Company (EHC).

At the time, this board member was an employee of the City of Ekurhuleni which is a direct contravention of Section 93E of the Municipal Systems Amendment Act, No 44 of 2003 and resulted in their disqualification.

In August of 2024, this same individual was appointed as the CEO of the EHC despite this matter having been reported to the Municipal Public Accounts Committee (MPAC).

When asked in council what bearing this matter had on the appointment of the concerned individual, the Executive Mayor simply stated that it had no bearing whatsoever.

Despite the shortlisting of six (6) candidates, it was felt that someone who had received illegal financial gain would be the best suited individual for the job.

In an attempt to placate council and assure residents that his administration is committed to fighting corruption and dealing seriously with fraud, Mayor Xhakaza indicated that his office would abide by the recommendations of MPAC once they had concluded their investigation.

However, it was pointed out by an MPAC member that the committee had dealt with the matter and it was now at Internal Audit for investigation.

Either the Mayor is oblivious to very serious matters in the city, or is wilfully ignorant.

The answers received today once again highlight that this ANC-EFF coalition will never have the capacity, nor the inclination to effectively root out corruption.

As long as this doomsday coalition is in office, the status quo will remain and the rot in the city will deepen.

The DA will push to ensure that the unduly awarded board membership fees are repaid to the city and that the recommendations of the investigation are affected immediately.

We will also consider raising a question of contempt against the Executive Mayor, in terms of rule 198 of the Council Standing Orders By-Law, for providing factually inaccurate and misleading information to Council.