Supplied by Eastern Cape Hawks
A former municipal manager at Enoch Mgijima Local Municipality (EMLM) is on trial for allegedly failing to prevent unauthorized, irregular, and wasteful expenditure.
The 52-year-old Nokuthula Zondani appeared in the East London Specialised Commercial Crimes Court on Wednesday, accused of amending an existing contract without following procedures in 2019.
During her three-year tenure as municipal manager, Tshiya Infrastructure Development was awarded a contract to hire plant and machinery at approximately R1.2 million per month for 36 months.
According to the charge sheet, after the first payment in November 2019, Zondani called a meeting suggesting an increase in Tshiya’s scope of work. The Chief Financial Officer, Supply Chain, and Council were to be consulted.
However, payments exceeding R7.1 million were made over four months without consultation or approval, allegedly contravening the Municipal Finance Management Act (MFMA) and resulting in unauthorized, fruitless, and wasteful expenditure.
During Wednesday's trial, chartered accountants Shawn Jordan and Mkhululi Mbali testified on the MFMA.
They agreed the act permits a minimum of 15-20% contract variation by a municipal manager without prior consultation. However, Mbali acknowledged the R7 million payments exceeded this threshold, adding that "if services were delivered, the issue could be deemed non-compliance rather than fruitless expenditure."
Zondani is now the Director of Community Services in the Amathole District Municipality (ADM). ADM spokesperson Sisa Msiwa confirmed the allegations surfaced after her appointment.
“We are aware of the case involving a director. As a district, we are committed to upholding the court’s integrity and will act based on its findings,” said Msiwa.
Zondani, who started her ADM position on 1 August and was arrested by the Hawks on 23 August 2023, is out on R5 000 bail. If convicted, she faces a fine or up to five years imprisonment.
Closing arguments are scheduled for Thursday.
