A report by an independent investigator looking into allegations of dereliction of duty against Sibusiso Makhanya, the Deputy City Manager (DCM) for trading services in the eThekwini Municipality, has recommended that he be subjected to a disciplinary hearing.
“The Mercury” has had sight of a confidential council report detailing the investigator’s findings which was tabled before a council meeting last Thursday.
The report, which was approved by council, recommended that Makhanya undergo a disciplinary process. Makhanya stated he was aware of the report but said he had not seen it.
“They are still to give it to me with the minutes.”
He was placed on precautionary suspension last month after the allegation against him surfaced. Makhanya is accused of failing to act to prevent the city from incurring millions of rand in fruitless and wasteful expenditure.
The accusation against Makhanya focused on his alleged failure to respond to emails regarding how the city should defend a legal claim brought against it by a service provider demanding close to R63 million.
A default judgment for this amount was granted against the City, which subsequently paid the money.
However, it is contended that apart from this amount, the City incurred R6.6 million in interest and legal costs related to the case and that Makhanya should be held responsible for this.
In a letter to the City arguing against his suspension, Makhanya said he was the one who alerted the City to the matter, adding that the city manager, Musa Mbhele, was also aware of it and was now conflicted as he was leading the process to act against him.
The investigator’s report to the council, outlines the chronology of events.
“On 15 February 2024, the service provider approached the High Court with an application for the payment of R63.5 million, with a court hearing scheduled for 3 April 2024. The investigator noted that several emails were sent to Makhanya on the matter, but he only responded after a default judgment had been entered against the city.”
Makhanya had claimed that he did not have access to his emails and that he had provided all the necessary information to the relevant city officials. He argued that even if he had been able to access his emails, there would have been no new information to provide.
The investigator concluded that Makhanya did not take reasonable steps to ensure that the interest and resultant legal costs, as mandated by the court order, were prevented.
Outlining the action to be taken, the report states: “The Municipal Council has accepted the report of the independent investigator and approved the recommendation for a disciplinary hearing against Mr Makhanya, determining that the alleged misconduct is of a serious nature.
“The council has also authorised the City Manager to appoint an independent and external presiding officer and an officer to lead evidence, with full authority to sign the letters of appointment,” it said.
The report also found that the interest and legal costs which had been calculated to be R6.6 million could be much less.
It states “the interest amount alleged to be owed by DCM Makhanya might be lesser given the conclusion made by the independent investigator in terms of the period to be considered to calculate the interest payment”.
Asked about the disciplinary matter against Makhanya, eThekwini Municipality’s spokesperson, Gugu Sisilana, said: “Discussing internal employer-employee related matters does not positively contribute to assisting the integrity of the process; hence, the City does not make public comments about matters that are discussed in closed meetings.”
The Mercury