{"id":867368,"date":"2026-07-25T14:00:00","date_gmt":"2026-07-25T12:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=867368"},"modified":"2026-07-24T15:29:27","modified_gmt":"2026-07-24T13:29:27","slug":"another-r4-billion-down-the-drain-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/867368\/another-r4-billion-down-the-drain-in-south-africa\/","title":{"rendered":"Another R4 billion down the drain in South Africa"},"content":{"rendered":"\n

This month, the City of Johannesburg Council approved the referral of 13 alleged acts of financial misconduct, totalling about R4.07 billion, to the City\u2019s independent Disciplinary Board. <\/p>\n\n\n\n

This referral is a preliminary step to determine whether these serious allegations are substantiated. <\/p>\n\n\n\n

The board will conduct initial investigations and report back to the Council on whether detailed investigations, formal disciplinary actions, or criminal proceedings are warranted.<\/p>\n\n\n\n

The investigation focuses on allegations of unauthorised, irregular, and fruitless or wasteful expenditure.\u00a0In the context of South African municipal governance, these terms have specific meanings.\u00a0<\/p>\n\n\n\n

Unauthorised, irregular, and wasteful expenditure occurs when municipal departments fail to comply with the Municipal Finance Management Act (MFMA), Supply Chain Management legislation, and other regulatory frameworks. <\/p>\n\n\n\n

Consequence management is meant to ensure the consistent enforcement of accountability, holding officials who breach financial regulations responsible for their actions. <\/p>\n\n\n\n

A preliminary investigation is an initial, independent evaluation by the Disciplinary Board to determine whether there is sufficient factual basis to initiate further disciplinary or criminal action.<\/p>\n\n\n\n

One significant principle in this is the presumption of innocence and due process. The Council’s decision to refer these matters is purely an investigative step and does not imply that any official is guilty of misconduct.\u00a0<\/p>\n\n\n\n

All affected officials retain their full rights to due process under the Constitution, the MFMA, labour legislation, and other applicable laws.<\/p>\n\n\n\n

Another aspect involved in this case is personal accountability versus accounting adjustments. <\/p>\n\n\n\n

Although the Council has the authority under the MFMA to regularise or write off certain irregular expenditures, especially if investigations reveal that the City suffered no actual financial loss, this does not absolve the officials involved.<\/p>\n\n\n\n

If evidence of misconduct is discovered, the officials in question will still be subject to disciplinary or criminal proceedings, regardless of any accounting adjustments.<\/p>\n\n\n\n

By using the independent Disciplinary Board, the Council allows established statutory mechanisms to function without bias. <\/p>\n\n\n\n

This process aims to safeguard public resources, uphold the integrity of municipal institutions, and enhance public confidence in the City\u2019s governance.<\/p>\n\n\n\n

“The City of Joburg is committed to ensuring that accountability extends beyond financial reporting”<\/h2>\n\n\n\n
\"\"<\/a>
Finance Executive Deputy Mayor and MMC Loyiso Masuku<\/figcaption><\/figure>\n\n\n\n

Finance Executive Deputy Mayor and MMC Loyiso Masuku said that this decision demonstrates the Council’s commitment to accountability beyond mere financial reporting.<\/p>\n\n\n\n

“Yesterday\u2019s resolution sends a clear message that the City of Johannesburg is committed to ensuring that accountability extends beyond financial reporting and that consequence management will be pursued wherever the facts and the law require it,\u201d said Masuku.<\/p>\n\n\n\n

\u201cThe City remains committed to ensuring that allegations of financial misconduct are dealt with transparently, fairly and without fear or favour.\u201d<\/p>\n\n\n\n

She said that this reinforces their determination to pursue consequence management wherever the facts and law require it.\u00a0<\/p>\n\n\n\n

Moving forward, the independent Disciplinary Board said it will complete its preliminary investigations and report its findings and recommended actions back to the Council. <\/p>\n\n\n\n

The City of Johannesburg has pledged to keep the public and the Council informed about the progress of these matters, in accordance with applicable laws, to maintain the integrity of the ongoing investigation.<\/p>\n\n\n\n

\u201cThis resolution is not merely about compliance with legislation; it is about strengthening public confidence in the City’s governance systems,\u201d she said.<\/p>\n\n\n\n

\u201cIt is about reinforcing the principle that every allegation of financial misconduct must be subjected to an independent, transparent and lawful process.\u201d<\/p>\n\n\n\n

Masuku said that the City of Johannesburg will continue to protect public resources by ensuring that accountability is applied consistently and without exception.<\/p>\n","protected":false},"excerpt":{"rendered":"

The City of Johannesburg approved the referral of 13 alleged acts of financial misconduct, valued at around R4.07 billion.<\/p>\n","protected":false},"author":127,"featured_media":867387,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2080986680710902181","_sma_x_attempts":1,"footnotes":""},"categories":[23],"tags":[2016,25909],"class_list":["post-867368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-city-of-johannesburg","tag-finance-executive-deputy-mayor-and-mmc-loyiso-masuku"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=867368"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867368\/revisions"}],"predecessor-version":[{"id":867391,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/867368\/revisions\/867391"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/867387"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=867368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=867368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=867368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}