The African National Congress (ANC)-led municipality, the City of Matlosana Local Municipality has been embroiled in ongoing corruption and fraud scandals, including serious allegations against top municipal officials.
While the residents are getting used to widespread service delivery challenges such as: water loss and sewer overflows, poor road infrastructure, inconsistent refuse removal and frequent street light outages, the Directorate for Priority Crime Investigation (Hawks) and the Special Investigating Unit (SIU) have launched investigations into the municipality’s finances, leading to arrests and court appearances.
Recently media reports indicated that the financially distressed municipality made two payments of R826,563.90 each to a company called Gold Heart Trading, owned by businessman Khumoeng Kemiso.
The municipal manager, Lesego Seametso, reportedly approved both transactions. Kemiso, who is also known as The Pearl Klerksdorp owner, is said to have close ties with Seametso.
Seametso is accused of approving more than R1.6 million in duplicate payments for Kemiso’s company for identical services. For the initial payment, she allegedly bypassed a crucial provincial oversight step required for municipalities under a financial recovery plan.
City Press reports the irregular expenditure was never recovered, nor disclosed in the municipality’s financial statements. Officials allegedly manipulated documentation to process the second payment, suggesting a deliberate and coordinated effort rather than a clerical error.
The company had submitted invoice 0221, dated 26 January 2024, for copy costs covering November 2023 to January 2024 for multifunctional copiers.
The report further alleged the payment request went through all the required departmental authorisations, where Seametso approved the payment on 29 April 2024. At this point, the paperwork should have gone to the provincial executive representative (PER) for concurrence, however, instead, Seametso allegedly sent the documents directly to the expenditure section, skipping the oversight step.
The report indicates that the clerk, Sibusiso Sekoati, then captured and authorised the transaction using invoice 0221, the other senior clerk Raymond Serame verified it and expenditure manager Jan Letlhoo approved it.
A system-generated document, known as the HI730, was produced and signed as part of the payment. The payment of R826 563.90 was made that same day, 29 April 2024, and recorded under electronic filling number 43219.
City Press reported days later though, the same documents were finally submitted to PER, but, crucially, this time the HI730 document was excluded. On 3 May 2024, the provincial representatives then provided concurrence, but this was after the first payment was made.
At the time of publishing this report, City Report did not receive any response from Seametso.
On Thursday, 09 October 2025, the Directorate for Priority Crime Investigation (DPCI) and National Prosecuting Authority’s Asset Forfeiture Unit (AFU) indicated that they have secured a preservation order of R2,7 million linked to fraud, corruption and money laundering case involving the City of Matlosana Municipality Chief Financial Officer, Mercy Phetla and five others.
The order was granted on 26 September 2025 by the High Court of South Africa, North West Division.
The Hawks spokesperson Lieutenant Colonel Tinyiko Mathebula told the media, investigations by the Hawks’ Serious Corruption Investigation and Priority Crime Specialised Investigation revealed that between September 2023 and January 2024, the municipality paid a service provider, called Variegated (Pty) Ltd, over R6 million for services which were never rendered.
“Further investigation uncovered that from the amount paid to Variegated by the municipality, over R4 million was transferred to a vehicle dealership for the purchase of three luxury vehicles: a Porsche valued at R2,3 million, Ranger Rover valued at R1 million and Maserati valued at R1,4 million.
“The preservation order was granted on three luxury vehicles; a Mercedes Benz CLA200, Range Rover Evoque, and Maserati Levante S M156, which are valued at R2,7 million.
“Mercy Phetla, the City of Matlosana CFO, Tiisetso Sebetlela, the director of Variegated, Josephine Tsimane, the City of Matlosana Municipality Stores official, Anga Shongwe, Mathapelo Puswe and Vincent Shongwe, who are implicated in the matter, are expected to appear at the Specialised Commercial Crime Court sitting in Klerksdorp on 27 October 2025,” said Mathebula.
The Democratic Alliance (DA) in Matlosana has alleged that fraud and corruption continue to thrive unabated under the current leadership of the executive mayor Fikile Mahlope, it has exacerbated since the arrival of the two Provincial Executive Representatives (PER).
It is also alleged that the PER team failed to assist and give advice on financial decision-making, due to officials who are not implementing their advises.
“The Democratic Alliance (DA) in Matlosana has reported unauthorized payments made to MAXPROF to the Hawks for investigation. During the Ordinary Meeting held on the 31st of March 2025, the DA was amazed by the presentation made by the PER, when they claimed achievements since assuming their responsibility in the municipality in January 2024, specifically claiming to have curbed 3 prohibited types of expenditure.
“This is a misrepresentation, as the latest Annual Report and various Financial Reports demonstrate a municipality in “autopilot” mode.”
The party queried a payment to the amount of R 3 496 835.92 to MAXPROF for completing a VAT 201 form that is system generated, dated 6 September 2024. The service provider’s 36-month legal contract had lapsed on the 20th of June 2023, with the unlawful emergency “12 months extension” also having run out on the 23rd of June 2024.
“MAXPROF did not have any valid legal contract with the municipality from the 24th of June 2024 to date. This has raised concerns among the DA due to the impunity of criminal and fraudulent conduct by the municipal officials in collusion with this service provider.”
The party accused Mahlophe of requesting the Council Speaker, Stella Mondlane-Ngwenya, not to allow discussion for the item in question and reprimanded them for planning to report the specific item to the media.
“Upon further investigation, the DA discovered that MAXPROF performed another VAT recovery in December 2024, still without a valid contract. MAXPROF has submitted another invoice for the amount of R4 150 574.62. This particular invoice from January 2025 remains unpaid because the municipal officials are aware that the Hawks are investigating this contract.
“The officials have committed fraud in terms of Regulation 36, which was submitted and reported late to the council. This includes the report covering the period June to August 2024, which was received as part of the MFMA Section 52(d) and 72 Reports and tabled in January 2025.
The Maine report tabled in council a month ago revealed that duplicate payments to the amount of R 292 million were made between 1 July 2023 and 31 March 2024.”
