R3.3m awarded to municipal manager amid VBS corruption scandal

Former West Rand District municipal manager Moroashike Mokoena is set to be paid nearly R3.3 million by the municipality for terminating his contract while facing corruption charges of unlawfully investing R347m with the VBS Mutual Bank.

Mokoena, 64, along with former chief financial officer (CFO) Romeo Mohaudi and erstwhile income and expenditure manager Mzwandile Mkhize, were arrested in June 2021 by the Hawks.

Mokoena faces charges of authorising the municipality to invest more than R347m with the now defunct financial institution and the approval of various investment policies from time to time in contravention of the Municipal Financial Management Act (MFMA).

At the time, the Hawks stated that Mohaudi caused R50m to be invested with VBS in contravention of the MFMA and the investment policy adopted by the Merafong Local Municipality.

The elaborate scheme saw the senior managers allegedly facilitating the investments and receiving corrupt gratifications from VBS officials through motor vehicle finance and mortgage bond facilities, as well as several other payments.

Mokoena and the other former officials were later released on R50,000 bail each by the Pretoria Specialised Commercial Crimes Court. Hawks spokesperson Colonel Katlego Mogale said the case will return to the Gauteng High Court, Pretoria, next month for the continuation of the trial.

Earlier, the West Rand District Municipality had, through an October 2019 council resolution, suspended Mokoena for three months based on how he managed the appointment process for the CFO.

In December 2019, an investigation commissioned by the municipality recommended that Mokoena face disciplinary action should it be established that his contract has not lapsed.

The following month, the municipality informed Mokoena that his appointment had lapsed in terms of the Municipal Systems Act after accusing him of failing to sign his performance agreement within 60 days, and as a consequence, there was no valid and binding contract of employment.

Mokoena then referred an unfair dismissal dispute to the Commission for Conciliation, Mediation and Arbitration, and a certificate of outcome certifying the matter as unresolved was issued.

He then approached the Labour Court in Braamfontein, Johannesburg, to review and set aside the council resolution and to declare the termination of employment invalid.

The Labour Court found that the municipality’s letter informing Mokoena that his contract, which ran from December 2016 to November 2021, had lapsed was based on an incorrect interpretation of the law and facts.

“The applicant’s (Mokoena’s) contract of employment did not lapse as alleged. His contract of employment was therefore terminated by the first respondent (municipality), and that act of termination was invalid.

Accordingly, the applicant’s contract of employment remained extant (in existence) and he is therefore entitled to his declaratory relief,” Judge Molatelo Makhura ruled last month.

The judge said that in the event that Mokoena’s appointment lapsed, the municipality was duty-bound to allow him to show good cause, but failed to do so.

Judge Makhura stated that he could not order Mokoena to resume his duties, and the municipality cannot be ordered to permit him to resume his duties because the fixed period has expired.

He said the appropriate relief was the payment of Mokoena’s remuneration for the remainder of his contract, between January 17, 2020 and November, 30 2021, which is an amount of just above R3.28m.

“The termination of the applicant’s fixed-term contract of employment on January 17, 2020 is hereby declared invalid and/or void ab initio (from the beginning).

“It is declared that the fixed-term contract of employment between the applicant (Mokoena) and the first respondent (West Rand District Municipality) remained extant (in existence) and the applicant remained the first respondent’s employee and municipal manager until 30 November 2021,” ordered Judge Makhura.

Mokoena’s successor as municipal manager, Elias Koloi, said he was on leave and undertook to delegate another official to respond, but no response was forthcoming.

Abner Mabaso, Mokoena’s legal representative, referred questions to the municipality.

loyiso.sidimba@inl.co.za