Joburg Market acting CEO faces Rustenburg fraud charges

The recent appointment of Sello Makhubela as acting CEO of Joburg Market has been overshadowed after allegations of fraud related to a municipal contract in Rustenburg came to light.

The revelation sparked fresh criticism about the city of Joburg’s vetting and oversight processes when appointing people to critical public roles.

Makhubele, who was appointed in April, faces four counts of fraud related to a lighting contract awarded by the Rustenburg municipality, involving his company.

He will appear in the Rustenburg Magistrate’s Court on Monday after handing himself over to the police, alongside co-accused Obakeng Mokgale and Orebotse Tlale. They out on R30 000 bail each.

Fraudulent contracts

Mokgale and Tlale, former employees of the Rustenburg municipality, face the same four counts of fraud. The charges stem from a contract for high mast lights to be installed at Kanana Phase 2 and Robega Phase 2 in Rustenburg.

Investigations by the municipality revealed that the contract was awarded to Makhubele’s company, which is accused of submitting fraudulent invoices totalling more than R1.7 million for services not rendered.

Mokgale and Tlale reportedly went ahead and awarded the contract to Makhubele’s company despite notices of noncompliance.

The accused allegedly signed procurement documents pretending the services were completed to process payments. At the time of his appointment, Makhubela was the chief operating officer at the Joburg Market.

ActionSA chief whip Zark Lebatlang said this incident once again raised concerns about the city’s vetting processes and about transparency and accountability in Johannesburg’s public appointments.

“We’re concerned about broader governance and accountability within the city, especially given recent similar issues. We question whether adequate vetting processes were followed, given the seniority of this position and the severity of the allegations,” Lebatlang said.

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Political parties take action

The party has written to the MMC for economic development, Nomoya Mnisi, and the city manager, demanding a comprehensive report on Makhubele’s employment records and the vetting procedures conducted prior to his appointment.

“We are trying to root out corruption and fraud in the city, yet someone in a key position faces serious charges. This is concerning and we can’t allow such an entity to be left in the hands of questionable individuals,” ActionSA said.

“What we want is to ensure that those who appointed him be held accountable. If credible evidence of misconduct arises, appropriate action should follow, which may include the CEO stepping aside during the investigation.”

The DA’s Belinda KayserEcheozonjoku expressed dismay at what she described as frequent mismanagement of cityowned entities, saying that all boards in Joburg-owned entities should be dissolved.

“We will be writing to the mayor, who is the 100% shareholder representative of these entities, to demand accountability and to understand why MMC Nomoya Mnisi appears to be protected and allowed to act without oversight, misusing funds at the expense of Joburg residents.” Mnisi’s office did not respond to questions.

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