City of Joburg fires employee for fraud amounting to R5m

Johannesburg mayor Herman Mashaba.
Johannesburg mayor Herman Mashaba.
Image: Simphiwe Nkwali

The City of Johannesburg has dismissed a senior official in the economic department for alleged fraud amounting to R5-million.

The employee was dismissed after being found guilty of dishonesty and “serious” contravention of the Municipal Finance Management Act (MFMA).

“The now former director produced a report authorising grant funding to a business to the value of R5 million that did not comply with section 67 of the MFMA‚” the city said in a statement.

“This particular business had a pre-existing contract with the department that clearly stipulated all monies which the company was allowed to receive for services rendered.

“The additional grant fell outside of this agreement. Added to this‚ recipients of City grants are required to produce financials‚ detailing how the money was spent. This did not happen.”

According to the City‚ the director became dishonest when asked to report and account on the matter during the investigation. He was also found to have lacked remorse during the investigation.

“These factors combined‚ resulted in the committee recommending immediate termination of employment‚” the City said.

“The department of economic development remains committed to ensuring that the residents of Johannesburg experience transparent government and value for the rates which they contribute to the city. Corruption is not only a scourge‚ but it robs the city of its ability to provide services‚ particularly to the disadvantaged.”

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