Makhado municipal manager Ms Faith Muthambi said on Wednesday that she would prefer not to comment at this stage on the numerous allegations of, amongst others, tender fixing, financial mismanagement and nepotism being brought against her.

The past month, allegations surfaced that Muthambi’s alleged close friendship with a contractor helped him to secure a R3,788 million tender (Tender 25 of 2006) for the rehabilitation of a street in Waterval. Although the contractor, Renkie Building Construction, never even completed the project, it is further alleged that the owner of the business continued to receive payment to the amount of just over R2 million more than the initial tender amount.

Shortly after the article was published in the Zoutpansberger of April 4, the municipality was quick to react and issue a statement to the effect that Muthambi’s relationship with the contractor is irrelevant as she does not form part of the municipal adjudication committee which awards municipal tenders. As for the "over-payment", it was stated that this was due to extra work that was added to the original contract. The municipality admitted, however, that the contractor’s work was of poor quality and that his services had been terminated in February this year.

Last week, Makhado mayor Cllr Glory Mashaba confirmed that Council’s technical and finance portfolio committee is currently looking into the allegations, but that there is no formal investigation. This committee sat last week and was tasked to make a recommendation to Exco (Council’s executive committee), based on their findings. Mashaba said that the Exco will then bring the matter before Council at their next meeting, scheduled to take place on April 24.

In the meantime, members of the South African Municipal Workers (SAMWU) took to the streets last Thursday, demanding Muthambi’s immediate suspension. In a memorandum handed to Mashaba, SAMWU not only highlights the Waterval tender controversy, but also makes several other allegations against Muthambi, ranging from corruption to nepotism (see article elsewhere in this edition). The relationship between Muthambi and SAMWU has been shaky at the best of times. This relationship worsened even further after Muthambi suspended the former chairperson of SAMWU and then assistant manager of expenditure at the municipality, Mr James Sikhwari, in October 2007. Sikhwari’s disciplinary hearing was concluded on Monday, April 21 when he was formally dismissed. The issue of his suspension also received attention in the memorandum.

As for SAMWU’s allegations, Muthambi told the Zoutpansberger on Wednesday that she was aware of the contents of the memorandum, but, although not unwilling to speak to the media, she did not want to comment at this stage. She stated that the allegations against her are not only very serious but also defamatory and that she has already sought legal advice on the matter.

"There are a lot of processes that have to unfold first," Muthambi said.

At this stage, Muthambi still performs her duties as municipal manager, but it is clear that her future at the municipality hangs in the balance. Last year already, her five-year contract with the municipality was the subject of discussion when the municipality failed to give her the prescribed six months’ notice of the termination of her contract and subsequently had to re-appoint her for another five years. Since then, her employment contract has featured several times as a confidential item on Council meeting agendas. So too is the investigation regarding the Waterval tender also listed as a confidential item on the agenda for April 24’s Council meeting. The Zoutpansberger managed, however, to obtain a copy of Exco’s recommendations to be tabled at the meeting. They include, amongst others, asking that a thorough investigation regarding the alleged maladministration/mismanagement in the Waterval tender be conducted by the provincial government and that Muthambi be suspended as a precautionary measure. It is also recommended that Exco be mandated with the power to suspend, if any, all other officials or councillors of the municipality found to be involved in the mismanagement/maladministration of the Waterval tender.

Like her predecessor, Mr Reuben Rambado, Muthambi’s fate is now also in the hands of the councillors. Rambado was suspended as municipal manager in July 2004 also after allegations of corruption and nepotism. In October of that same year, the disciplinary hearing against him took a dramatic turn when Council withdrew all charges against him in exchange for his resignation. Rambado resigned and received a severing package of R836 4000 in terms of his employment contract.