RUSTENBURG HERALD - RUSTENBURG - After months of frustration and efforts by two Councillors of the Rustenburg Municipality to see the Rustenburg Municipality taking action against the RLM’s Municipal Manager (Adv Ashmar Khuduge) formal charges have been laid against the Municipal Manager with the Rustenburg police last Wednesday (30 July) in a move that involved not only the presence of ActionSA’s two Cllrs, but also that of ActionSA Party Leader, Herman Mashaba.
“In the long and tiresome process leading up to last week, our attempts to see justice being done, were met with inexplicable opposition and apparent favouritism towards the Municipal Manager from within Council,” Rustenburg Herald was told.
ActionSA led by its Rustenburg Municipality Councillors, Ofentse Kombe and Thamzile Phanuel Nkaelang, accompanied by National ActionSA leader, Herman Mashaba, laid criminal charges against the Municipal Manager of Rustenburg, Adv Ashmar Khuduge, in connection with allegations of fraud and corruption related to his role as the municipality’s accounting officer and his involvement in alleged serious financial misconduct.
In laying these criminal charges, ActionSA believes the conduct of the Municipal Manager of Rustenburg Local Municipality, Adv Ashmar Khuduge, constitutes financial misconduct as defined by the Municipal Finance Management Act (MFMA). Specifically, the charges relate to the following failures and actions:
Failure to prevent unauthorised expenditure:
The Municipal Manager failed to take reasonable steps to prevent unauthorised expenditure amounting to R10.4 million in legal fees, as flagged in paragraphs 28 and 67 of the Auditor-General’s report and note 53 of the audited annual financial statements for the 2024/25 financial year.
Irregular expenditure of over R335 million:
The Municipal Manager failed to prevent irregular expenditure totalling R335.2 million, as disclosed in note 55 of the consolidated Annual Financial Statements for 2023/24.
This irregular expenditure primarily stems from tenders that should have undergone open and transparent competitive bidding processes but were instead processed in contravention of section 217 of the Constitution and regulation 19(a) of the Municipal Supply Chain Regulations.
Non-compliance with procurement regulations:
There was also a failure to comply with Regulation 36 of the Municipal Supply Chain Regulations relating to the procurement of goods and services through deviations from prescribed supply chain processes, as reflected in note 57 of the consolidated financials for 2023/24.
Abuse of power under section 114 of the MFMA:
The Municipal Manager misapplied section 114 of the MFMA in the appointment of a service provider for a contract exceeding 36 months, without adhering to the requirements of section 33 of the MFMA. “We are further concerned that the municipality has failed to investigate these serious allegations, as required by section 171(4) of the MFMA. This inaction fosters a culture of impunity, causes significant reputational harm, and undermines public confidence in local governance.”
“ActionSA believes that these are not isolated lapses, but rather constitute clear financial misconduct in terms of the Municipal Finance Management Act, and must now be addressed by the relevant law enforcement agencies. We have also forwarded these.
“We are further concerned that, despite attempts to bring this matter before Council, the Speaker has obstructed efforts to hold the administration accountable. As a result, ActionSA will file an urgent complaint with the Public Protector to ensure that allegations of financial misconduct, fraud and corruption are not swept under the carpet.
“ActionSA has declared corruption as public enemy number one and remains committed to rooting it out wherever acts of impropriety occur. We will ensure that implicated officials and individuals are held fully accountable.”
* Rustenburg Herald prompted the Com-munications Department of Rustenburg Local Municipality for comment on the matter, but none was received.
