After a costly legal battle with the City of Johannesburg since May last year, Advocate Sdu Gumede has resigned as Joburg’s ombudsman on 19 February.
He said he ‘literally ran out of money to continue fighting’.
The legal battle saw many twists and turns with Gumede taking the City to the Labour Court which ruled against the City.
Later the City instituted disciplinary hearings against Gumede which were later postponed and the City’s original legal representation was removed from the case.
In a document obtained by the Randburg Sun, the law firm had advised the City not to suspend the ombudsman because the reasons for his suspension were not justified.
READ: Case of suspended ombudsman will continue in February
The document also mentioned that the reference to alleged fraud committed by Gumede in the submission prepared for the City was ‘far-fetched and not supported by the allegations made against Mr Gumede’.
According to information contained in Gumede’s founding affidavit submitted to the Labour Court, the main charge which seemed to be at the centre of his suspension was his failure to disclose his previous relationship with Yeo Technologies.
This is the company that provided call centre services to the Office of the Ombudsman. Gumede, however, maintained that he had no conflict of interest.
Meanwhile, Mashaba has been accused of using his former company, Lephatsi Financial Services to implement the insourcing of security personnel within the City. He denied the allegations implicated in an article published by The Sowetan and said it had tarnished the City’s reputation.
It was alleged that a former business associate reportedly working for the company, which is also reportedly owned by the mayor’s wife, gave Mashaba advice on insourcing security personnel.
The mayor claimed that this service was provided to the City free of charge. It was also determined that the former business associate had no financial interests in the City, according to Mashaba.
“Further to this, it was made explicitly clear that any assistance given would not entitle the individual or any organisation they may be associated with the former business associate, to any existing or future business with the City,” Mashaba said.
“Arising from this critical work, we have been able to initiate the process to begin insourcing to the benefit and dignity of our security guards.
“The fact that I am able to bring expertise from the private sector to assist the City without financial benefit to anyone other than our residents, is something of which I am not ashamed.”
Mashaba gave The Sowetan 48 hours to withdraw the article, threatening to approach the Press Ombudsman.
As of 20 February, the article could no longer be found on The Sowetan’s website.
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