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Emfuleni CFO Andile Dyakala accused of corruption

Andile Dyakala the chief financial officers of Emfuleni Local Municipality. File Picture: Masi Losi

Andile Dyakala the chief financial officers of Emfuleni Local Municipality. File Picture: Masi Losi

Published Aug 24, 2020

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Johannesburg - The chief financial officer of embattled Emfuleni Local Municipality, Andile Dyakala, has been accused of corruption and bypassing the Municipal Finance Management Act and ruling with an iron fist.

Sources within the municipality have told the Sunday Independent that Dyakala has been using his position to try and remove the municipality’s supply chain manager (SCM) who has been raising complaints against him.

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In a letter seen by the Sunday Independent, SCM manager Jason Mkhwane wrote a letter in April to the municipal manager requesting an investigation into the conduct of Dyakala.

In the complaint, Mkhwane claimed that Dyakala was sitting on documents that implicate the CFO in possible financial misconduct but still had not tabled them before the relevant committees.

“This raises the possibility of jeopardising or manipulating certain evidence. As was evident after the meeting held on 21 April, 2020 that the CFO continues to interfere, intimidate and victimise possible witnesses,” Mkhwane said in his letter.

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He called on the municipal manager to investigate a contract that was awarded for Short Term Insurance. He states in the letter that there was “non-compliance” with regulation 13 of preferential procurement policy framework act.

There was also non-compliance with national treasury circular 96 and “no financial benefit to the municipality”.

He also raised concerns regarding the appointment of a panel of attorneys, adding that there was no financial benefit for the municipality, it also did not comply with national treasury regulations.

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This week, the municipality failed to respond to specific questions relating to the complaint and the CFO. Instead, the spokesperson, Stanley Gaba, said they could not discuss the matter in the media.

“This remains an internal matter and continues to receive the urgent attention of the municipal manager, Mr Lucky Leseane.

“In his intervention, the municipal manager is cognisant of issues of procedural and substantive fairness, and therefore, this matter cannot be dealt with in the media.

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“Regarding allegations of financial misconduct, the municipality is currently implementing recommendations of a forensic report commissioned by Council, and undertaken by the forensic consulting firm, Comperio.

“To this end, several letters of suspensions have been issued to officials implicated in alleged financial misconduct,” he said.

Dyakala yesterday claimed the allegations levelled against him were nothing but a smokescreen to tarnish his image as he has been fighting corruption in the municipality.

He further pointed the finger at Mkhwane, accusing him of being corrupt.

The Sunday Independent has established that after Mkhwane wrote a complaint on April 22 Dyakala hit back a month later by lodging his own complaint about him.

In the five-page letter, Dyakala requested the municipal manager to investigate alleged irregularities and called for “immediate institution of disciplinary proceedings” against him.

Amongst his complaints, Dyakala said Mkhwane did not follow regulations when he appointed service providers for the burial of a councillor.

“The office of the speaker submitted to SCM the lowest quotation, however, manager SCM rejected or did not use the lowest quote. This was in transgression of municipal supply chain regulations and constitutes financial misconduct,” he said.

Other complaints included a contract to supply Covid-19 PPEs, the appointment of an insurance broker and the appointment of a service provider to print municipal accounts. He called for a disciplinary hearing against Mkhwane.

Dyakala added the allegations against him were meant to sidetrack him.

“The allegations are mendacious and are meant to sidetrack me in the fight against corruption at Emfuleni Local Municipality. I arrived at Emfuleni Local Municipality on the 17 April, 2018 being seconded by Gauteng Provincial Treasury and I uncovered irregular expenditure to the value of R873 million and Mr Jason Mkhwane is currently on precautionary suspension for such.

“I recently uncovered 16 irregular deviations reports that were approved by the manager SCM Mkhwane and municipal manager Mr Lucky Leseane to the value of R62 million that did not follow due process.

“The allegations are meant to sidetrack me on the fight against malfeasance, systemic corruption and abuse of SCM in Emfuleni Local Municipality and I will not allow these malicious, mendacious sideshows to distract my fight against uprooting corruption,” he said.

At least two sources in the municipality said Dyakala’s complaint was to counter the one which was lodged against him.

“He is trying to divert attention so the complaint lodged against him is not fully investigated.

“This is how he operates,” said one of the sources.

Mkhwane declined to comment on the letter and allegations levelled against him and referred all enquiries to the communications department.

Sunday Independent

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