Former Municipal Manager Sentenced for Contravention of Municipal Finance Management Act

24 March 2025

Former Municipal Manager Sentenced for Contravention of Municipal Finance Management Act

The Mpumalanga Specialised Commercial Crimes Court sitting periodically in Middelburg convicted former Municipal Manager of Dr JS Moroka Municipality, Nelson Thammy Kubheka for Contravention of Municipal Finance Management Act. He was sentenced to a fine of R50.000 00 or 2-years imprisonment and to a further 2 years imprisonment which is wholly suspended for 5 years imprisonment on condition that the accused is not convicted of Section 173(1) or (2) of the Local Government: Municipal Finance Management Act 56 of 2003 (MFMA) during the period of suspension.

On inception of the charges Kubheka was charged with 36 counts ranging from fraud read with section 103 of the Criminal Procedure Act, 51 of 1977 alternatively theft, and Contravention of the Municipal Finance Management Act (MFMA) for not following procedure when approving the appointment of the service providers resulting in the actual loss of R4.8 million. In 2019, Kubheka appointed six (6) service providers without following proper procurement and municipality procedures provided in the Local Government: Municipal Systems Act 32 of 2000, which resulted in overspending of R4,8 million, which was not budgeted for.
During the trial the prosecution led credible evidence of the Chief Financial Officer (CFO) and of municipality employees who testified about the policies and procedures of the municipality. The evidence proved that the policies and procedures were not followed when the service providers were appointed. The court found that the evidence led only proved beyond reasonable doubt the overspending of about R1,8 million, and the accused was convicted on 1 count of contravention of MFMA and was acquitted on the other counts.

The NPA encourages the community not to lose confidence in the rule of law. We strive to prosecute the perpetrators of similar crimes, especially accounting officials who are accountable to serve the interests of the community intended to uplift social and economic wellbeing of the society. We will continue the fight against complex commercial crimes and prosecute without fear, favour or prejudice.

Issued by: 

Monica Nyuswa
NPA Regional Spokesperson
DPP Mpumalanga
Tel: 0130450625
Email: myuswa@npa.gov.za