Council report recommends Tshwane CFO Gareth Mnisi be suspended

A report recommending the suspension of Tshwane Municipality’s embattled Chief Financial Officer (CFO), Gareth Mnisi, will be tabled before an in-committee meeting on Wednesday.

The report, seen by EWN, recommends the council suspend Mnisi for three months with full pay.

During that time, a disciplinary hearing will also be held to consider the allegations of misconduct against Mnisi.

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Mnisi was implicated at the Madlanga Commission of colluding with other senior officials in the city to manipulate the awarding of tenders.

He is accused of using his position to steer city tenders to his preferred bidders.

THE FIRST AND FINAL SUSPENSION NOTICES

Mnisi featured prominently in the testimony of Organised Crime cop Sergeant Fannie Nkosi.

The Madlanga Commission showed WhatsApp chats between Mnisi and Nkosi speaking about active tenders in the Tshwane Municipality and exchanging lists of bidders.

Following the damning revelations, on 26 March, the Tshwane Municipality council convened a special council meeting, where it was agreed that Mnisi would be given a notice of precautionary suspension.

The notice was served to Mnisi two days later.

In line with Regulation 6 of the Local Government: Disciplinary Regulations for Senior Managers, the notice was subject to Mnisi being given seven days to make written submissions on why he should not be suspended.

On 1 April, Mnisi’s lawyers wrote to the city Manager, Johan Mettler.

Instead of submitting reasons against his suspension, they raised procedural issues with the notice and asked for it to be withdrawn.

However, Mettler refused the request, affording them another seven days to make written submissions, with the deadline now 11 April.

MNISI'S LAWYERS MAKE WRITTEN SUBMISSIONS

On 11 April, Mnisi's lawyer, Mothapo Attorneys, wrote to Mettler, setting out several reasons why their client should not be suspended.

“Our client denies that he communicated with external and/or any city officials regarding tenders which were under consideration,” the letter reads.

“Our client further denies that he transmitted any information relating to preferred bidders with any intermediaries [the alleged intermediaries are not disclosed or mentioned].”

In the letter, Mnisi’s lawyers deny that he influenced the Bid Adjudication Committee (BAC) to award tenders to his preferred bidders.

In addition to being CFO, Mnisi was also the chairperson of the BAC, which plays a critical final role in deciding which companies get awarded a tender.

Mnisi’s lawyers said there is “simply no factual basis” that there would be reputational damage to the city’s procurement processes if Mnisi is allowed to remain in his job.

One of the reasons given in the notice to place Mnisi on precautionary suspension was that the metro felt his continued presence as CFO would negatively impact investor confidence.

However, Mnisi’s lawyers deny this.

“To the contrary, investor confidence in the city will be enhanced by the observance of due legal processes, respect of the rule of law and adherence to our client’s right to fair labour practices, which includes the right not to be unfairly suspended based on spurious and unsubstantiated allegations,” their letter reads.

REPORT TO BE TABLED TO COUNCIL

On Monday, the Tshwane Mayoral Committee (Mayco) held a long meeting considering the representations made by Mnisi’s lawyers.

On the same day, in a separate matter, Mayor Nasiphi Moya missed a meeting with the community of Hammanskraal, which descended into chaos after residents learned she would not be attending.

The meeting was meant to discuss persistent water challenges in the north Pretoria township.

On Monday, Mayco approved the report, which will be tabled before a special council meeting on Wednesday.

The report notes and disagrees with the submissions made by Mnisi’s lawyers.

“The representations [by Mnisi] do not engage with the specific concerns arising from the testimony presented at the Madlanga Commission of Inquiry, nor do they provide a substantive explanation addressing the nature of the alleged interactions or the risks identified,” the report states.

The report says Mnisi’s submissions do not address of him interfering with witnesses and or the investigation into his alleged misconduct.

It further says that while the allegations against Mnisi remain untested, they are made from sworn testimony and call into question the CFO’s fitness to conduct oversight of the city’s finances.

The report takes issue with Mnisi’s written submissions not addressing specifically the allegations against him that arose at the Madlanga Commission.

“The CFO’s denial of the allegations, without further substantive engagement with the identified risks, does not in itself negate the existence of such risks. In the absence of a substantive explanation addressing these risks, council is required to proceed on the basis that such risks remain present,” it reads.

“The purpose of a precautionary suspension is not to determine guilt, but to safeguard the integrity of the investigation and the administration of the municipality, pending the outcome of that process.”

The report recommends that the council approve the precautionary suspension of Mnisi for three months on full pay, pending an investigation into the allegations of misconduct.

It also recommends that the council considers a “reasonable basis” that Mnisi may interfere with witnesses, jeopardise the investigation against him, and cause instability within the metro if he is allowed to continue at work.

The report recommends that a disciplinary hearing must be held within three months of Mnisi from the date of suspension, failing which, the suspension lapses.

WHAT HAPPENS NEXT

Barring any unexpected events, the report is likely to be adopted by the council on Wednesday.

Political parties across the spectrum in Tshwane are all in agreement that Mnisi should be suspended while a full investigation is conducted on him.

Mettler will have to appoint an independent investigator to probe the misconduct allegations against Mnisi.

The investigator’s report must be tabled before the council within 30 days of appointment.

Another item on the agenda for Wednesday’s council meeting is for it to approve the appointment of division head for Tshwane’s budget officer, Nthabiseng Mokete, to be the acting CFO.

Mokete will be employed in an acting capacity on a month-to-month basis, not exceeding three months.

At the same time, Mnisi is scheduled to testify at the Madlanga Commission on 17 April.