ACTIONSA is indignant about accusations of explosive whistleblowers who reveal a deep-rooted collusion between high officials of Centlec and the Free State Division of the Auditor General of South Africa (AGSA). These claims expose a calculated effort to manipulate audit results, hide fraud and protect the powerful, while ordinary residents continue to suffer from failing municipal administration.
According to information received by ACTIONSA, Senior Agsa Free State figures – including Hoofd auditor Nthahatsi – actively collaborated with Centlec employees and consultants to falsify and forget audit outcomes that should have exposed widespread financial maladministration and fraud within the municipal entity.
Accusations include:
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Chief Auditor Nthako Saohatsi, reportedly appointed without complying with minimal qualifications, used its position to protect the CEO of Centlec and suppress audit findings about serious irregularities, including the illegal refusal of leave compensation to dismissed staff under the instruction of the CEO.
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Sam Zziwa, a former AGSA FS employee, became Centlec Insider, and Zoe Williams, a former PWC auditor and now CFO, reportedly collaborated with AGSA to manipulate audit reports. Their interference reportedly obtained Centlec unqualified audit, despite financial conditions that justify a disclaimer.
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The AGSA FS and audit team, in particular under Sam Zwane, has to explain how this level of collusion with Centlec officials was uncontrolled for years.
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Zoe Williams, whose earlier termination costs Centlec costs around R2 million in legal costs as a result of irregular expenses, has inexplicably reappointed as CFO by the same council that continues to fail in its supervision role.
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The current Centlec board, chaired by Casca Mokitlane, is described by insiders as the worst in the history of the entity, without independence, accountability and technical capacity.
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Accusations of favoritism and political favoritism are widespread, with family members of high officials and allies of the CEO reportedly rewarded with jobs for helping with the dismissal of whistleblowers and critical staff.
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LQ Technologies, a company that is reportedly linked to Bernard Phitsane, is involved in repeated technical malfunctions that influence the Centlec sales system, but continues to receive contracts from the entity.
Further allegations suggest that important executive appointments – including Justice Mojaje (Executive Engineering Wires) and Boitumelo Motswee (Executive Engineering Retail) – were driven by political and regional loyalty rather than merit. AGSA FS failed to mark these irregular agreements.
The dismissal of Katleho Koao from the Financial Department of Centlec is supposed to have been retribution, based on unproven allegations of leaking information. Ironically, Koao had previously helped Zoe Williams during her earlier term of office, when she was reportedly the source of leaks aimed at ANC officials.
Actionsa requires the following:
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Immediate intervention by the National Agsa office to check and investigate the handling of Centlec Reports by the Free State Division in the past five years.
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Reference from Hoofd auditor Nthako Saohatsi to the Independent Regulatory Board for Auditors (IRBA) for coarse misconduct and collusion in fraudulent practices.
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A complete forensic investigation into the reappointment of Zoe Williams and the expenditures with regard to its earlier legal matter.
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Immediate suspension of Centlec’s CEO Malefane Sekoboto pending a parliamentary investigation into the failure of governance and abuse of power.
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Dissolution of the Centlec Board chaired by Casca Modise Mokitlane for a rough duty and not exercising independent supervision.
This scandal is not just about Centlec. It is about the collapse of ethical supervision, the corruption of professional standards and the abuse of public institutions for personal and political gain.
It is also another example of municipalities run by ANC that protect frameworks against communities. It reflects a broader management crisis in the free state, one that is possible by compromised supervisory structures and political shielding.
ACTIONSA will urgently submit a petition to the National Agsa office, IRBA, the Minister of Cooperative Governance and Traditional Affairs, and the public protector to intervene. We will not rest if every official involved in this institutional rot is called to account.
The people of Mangaung deserve better. South Africa deserves better.
Johannes
www.actionsa.org.za