JN Reporter
... SIU recommends prosecution after R221m security contract scandal rocks municipality ... Mayor, Speaker, and Chief Whip Submit Resignations Following ANC PEC’s last year Resolution
Following months of investigation into financial misconduct involving more than R221 million — and mounting anticipation of a possible arrest — the Moqhaka Local Municipality has officially dismissed its Municipal Manager, Portia Tshabalala. Her removal was confirmed during a special council meeting held on 29 January 2026. Tshabalala was found guilty of financial misconduct linked to the unlawful payment of over R221 million to Isidingo Security Services, a KwaZulu-Natal-based company that allegedly did not qualify for the tender. She is also facing potential criminal charges after the Special Investigating Unit (SIU) reportedly completed its probe and submitted its report to the National Prosecuting Authority (NPA) last year, recommending prosecution. Municipal spokesperson Dika Kheswa said council deemed the dismissal lawful and appropriate. “The municipality wishes to assure residents, employees and stakeholders that this transition will not disrupt service delivery,” said Kheswa, adding that council remains committed to upholding the rule of law and strengthening institutional integrity. In October 2025, Journal News reported that it was in possession of a confidential referral affidavit dated September 2025, containing the full SIU report and its recommendation for criminal prosecution. According to the report, Tshabalala unlawfully appointedidingo Security Services on 17 January 2020. The company allegedly failed to deliver the required armed security services, yet the municipality paid more than R221 million over three years for a contract originally valued at R87 million. The expenditure exceeded the original contract value by 66% — far above the 15% variation threshold permitted under the municipality’s 2018/2019 Supply Chain Management Policy. The SIU flagged multiple irregularities in the procurement and management of the contract. At the time of appointment, Isidingo’s firearm licence had reportedly expired, meaning it could not legally provide armed security services. As a Durban-based company, it also did not meet locality preference requirements. The report further identified a conflict of interest. On 17 October 2019, Tshabalala — then serving on the Bid Adjudication Committee (BAC) — recommended Isidingo as the preferred bidder. She later appointed the same company in 2020 while acting as Municipal Manager. Although she declared her prior involvement, the SIU found this constituted a conflict of interest under the Municipal Systems Act (Act 32 of 2000). Additionally, Tshabalala allegedly failed to obtain council approval for a contract extension that ran for more than nine months and continued renewing the agreement until 28 February 2023. Meanwhile, Free State MEC for Cooperative Governance, Traditional Affairs and Human Settlements, Saki Mokoena, has seconded T Ngesi as Acting Municipal Manager with effect from 10 February 2026. In a letter dated 9 February 2026, seen by this publication, Mokoena confirmed that the secondment will last for three months. “The MEC accedes to the request from Council to second an official to act as Municipal Manager… This is done to assist in stabilising and strengthening the administration of the municipality,” the letter states. Ngesi will be required to conclude a secondment agreement and performance agreement with the Executive Mayor to regulate the terms and conditions of his appointment. In a related development, Journal News has been reliably informed that Mayor Motloheloa Mokatsane, Speaker Selloane Khiba and Chief Whip Mamajeremane Semakale have recently resigned. The trio formed part of seven municipal troikas — comprising mayors, speakers and chief whips — dismissed by the ANC Provincial Executive Committee (PEC) in August last year, citing poor performance and failure to safeguard service delivery. However, ANC provincial spokesperson Thabo Meeko said he could neither confirm nor deny the municipal troika’s reported resignations when contacted on Thursday.
