City of Johannesburg entity paid R1m for a wall that was never built
The CEO of the Johannesburg Social Housing Company (JOSCHO), Themba Mathibe, is facing scrutiny following allegations of financial irregularities and a controversial promotion despite internal concerns. Mathibe was recently arrested by the Special Task Force of the South African Police Service (SAPS) on suspicion of money laundering, with police reportedly finding a substantial amount of cash at his home near Sandton. He is currently out on R50,000 bail after appearing in the Alexandra Magistrates Court in January.
The Phantom Wall
The current investigation centers around a R1 million payment allegedly authorized by Mathibe to a subcontractor for the construction of a wall at the Moffat View Old Age Home. However, according to a letter from former Human Settlements MMC Anthea Leitch, the wall was never built. The subcontractor allegedly submitted fraudulent photos purporting to show the completed structure.
Leitch’s letter further alleges that Mathibe instructed the contractor not to proceed with the work after the funds were allocated. JOSCHO maintains that the R1 million was fully recovered and properly accounted for in its financial records more than two years ago, and that the project manager responsible for the misrepresentation admitted to misconduct during questioning.
Internal Concerns and a Disregarded Recommendation
The allegations of improper payment occurred while Mathibe served as the Chief Operating Officer (COO) of JOSCHO. Following Leitch’s letter, the then-CEO, Bongani Radebe, recommended Mathibe’s precautionary suspension due to alleged interference with the investigation into the “phantom wall.”
A Promotion Instead of Suspension
Despite this recommendation, which was noted and approved by the JOSCHO board, Mathibe was not suspended. Instead, he was promoted to the position of acting Chief Executive Officer. He currently also serves as the CEO of the Johannesburg Development Agency (JDA), reportedly earning R3.3 million annually.
JOSCHO has stated that there was no “prima facie evidence” to justify Mathibe’s suspension, arguing that the investigation was already advanced when Mathibe attempted to recover the funds from the contractor. Leitch’s letter, however, contends that Mathibe’s actions constituted interference with an active investigation conducted by the Johannesburg Group Forensic Investigation Services (GFIS).
Recent Arrest and Ongoing Investigation
Mathibe’s recent arrest occurred during a raid on JOSCHO’s offices in Braamfontein, where senior officials were questioned as part of a broader investigation into procurement irregularities. Law enforcement focused on serious discrepancies in the project related to the unbuilt wall.
Frequently Asked Questions
What was Themba Mathibe accused of doing?
Themba Mathibe allegedly authorized a payment of R1 million to a subcontractor for a wall that was never built at the Moffat View Old Age Home. He is also accused of interfering with an investigation into the matter.
Was Mathibe suspended following the allegations?
No, Mathibe was not suspended despite a recommendation from the then-CEO, Bongani Radebe, and approval from the JOSCHO board. He was instead promoted to acting CEO.
What is the current status of Mathibe’s case?
Mathibe was arrested on suspicion of money laundering and appeared in the Alexandra Magistrates Court in January. He is currently out on R50,000 bail.
As the investigation continues, it remains to be seen what further actions may be taken by law enforcement or JOSCHO. A possible next step could involve further scrutiny of procurement processes within the Johannesburg Development Agency, given Mathibe’s current role there. The outcome of the legal proceedings against Mathibe will also likely influence future decisions regarding his employment.