Tshwane CFO Gareth Mnisi faces scrutiny over late financial statements

The City of Tshwane's chief financial officer (CFO), Gareth Mnisi has come under fire from the regional ANC, accusing him of failing to submit the annual financial statements for the 2023/24 financial year on time, in contravention of the Municipal Finance Management Act (MFMA).

The ANC demanded that city manager Johann Mettler act against him by tabling a report to council recommending Mnisi's precautionary suspension following a litany of allegations of misconduct, maladministration, and tender manipulation.

The party also called for a full, independent forensic investigation into the claims, which include unauthorised, irregular, wasteful, and fruitless expenditure.

According to the party, Mnisi's failure to submit the financial statements on time constituted a financial transgression explicitly highlighted by the Auditor-General.

 Addressing the media on Tuesday, ANC regional secretary George Matjila slammed Mnisi's failure to submit the annual financial statements on time, saying it was a "direct breach of the MFMA". 

Matjila added that Mettler had attempted to address the issue in council, but coalition parties failed to reach consensus.

"The city manager must, without further delay, take this report to council. The current audit outcomes hinge on the CFO’s leadership, yet documents continue to be submitted late to the AG, jeopardising the entire process," he said.

Matjila slammed Mettler's failure to deliver a promised report on Mnisi's conduct and a lifestyle audit, calling for transparency and accountability.

He further accused Mnisi of presiding over a financial disaster, with unauthorised, irregular, wasteful, and fruitless expenditure skyrocketing under his watch. 

"His leadership is directly linked to this unsustainable financial leakage, eroding public funds meant for service delivery," Matjila said.

Last month, the Auditor-General's 2024/2025 financial year report in council revealed that the municipality has racked up another qualified audit opinion.

Cilliers Brink, DA Tshwane mayoral candidate said: "Unauthorised, Irregular, and Fruitless and Wasteful expenditure – wasted money – has increased by R5 billion to R23 billion in total."

Mnisi also faced allegations that he cancelled tenders in the roads and transport department without explanation -the move that led to poor grant performance.

Matjila also cited that a security tender has been inexplicably postponed for a full year, contributing to irregular spending.

"While the coalition is viewed as protecting the current tender, we reveal that the hindrance originates from the CFO’s office," he said.

The DA has repeatedly criticised the ANC regional chairperson Eugene Modise,  also deputy mayor, for his past ties to a security company called Triotic Protection Services with municipal contracts.

Modise, who also serves as Finance MMC, had previously said he resigned from Triotic, a company owned by his mother, Nelly Modise, and directed by Neo Mafodi, allegedly the mother of his child. 

The company was awarded a security tender in the 2016/2017 financial year.

The ANC also raised concerns regarding the city's procurement processes relating to a toilet tender supplier that was allegedly cancelled and extended for a year without proper reporting to the mayoral committee. 

Matjila said: "We have information that the planned new appointments involve 10 companies handpicked by the CFO from his close proxies. The ANC will not fold its arms while the supply chain management department fails under the CFO’s leadership."

He claimed the city's finance department is in shambles, forcing other departments to deviate from planned projects, risking funds being returned to the National Treasury.

"Furthermore, the CFO is protected by unauthorised “bodyguards” who provide static security in the council building—an arrangement not approved by Council. Who is the CFO scared of, and has he reported any threat to the SAPS? We demand a full report from the city manager," Matjila said.

The party is also gunning for Tshwane chief of metro police Yolande Faro, saying she got off lightly for failing to explain an unauthorised "donation" and Christmas holiday.

This stemmed from allegations that Faro and senior officials received lavish gifts from wealthy individuals at a festival in Sun City last year. The group allegedly received between R400,000 to R450,000, which they failed to declare as gifts.

According to Matjila, Faro's deputy received a certificate for training she never attended, and Faro failed to act against her deputy because she herself escaped proper scrutiny. 

He also claimed Faro illegally reassigned Corporate Services functions to favoured deputies.

"The appointment of 200 metro police trainees is marred by malfeasance and favouritism, with qualified candidates overlooked," Matjila said, adding that Faro maintains an escort detail larger than that of the Premier of Gauteng.

"We demand the risk assessment that justifies this extravagant use of resources," he said, calling for a full investigation into the allegations.

The city has not yet responded to media questions emanating from the ANC allegations. 

rapula.moatshe@inl.co.za