The Johannesburg Social Housing Company (JOSCHO) CEO, Themba Mathibe, is alleged to have authorized a payment of R1 million to a subcontractor for a wall that was never constructed.
Investigation and Allegations
The allegations surfaced in a letter penned by the city’s former Human Settlements MMC, Anthea Leitch, in December 2023. Leitch’s letter details that Mathibe signed off on the payment despite being informed not to proceed with the work. The subcontractor allegedly submitted fraudulent photos purporting to show the completed wall at Moffat View Old Age Home.
An internal investigation was launched, and later expanded to include the Johannesburg Group Forensic Investigation Services (GFIS). Leitch’s letter further alleges that Mathibe attempted to recover the funds from the service provider without seeking legal counsel, potentially interfering with the GFIS investigation.
From COO to CEO, Despite Concerns
Eyewitness News reported that JOSCHO disregarded its own recommendation to suspend Mathibe, then serving as Chief Operating Officer (COO), during the initial investigation. Instead of suspension, Mathibe was promoted to acting Chief Executive Officer (CEO). He too currently serves as the CEO of the Johannesburg Development Agency (JDA), reportedly earning R3.3 million annually.
JOSCHO maintains that there was no sufficient evidence to justify Mathibe’s suspension, stating that the investigation was already advanced when Mathibe attempted to recover the funds. The entity also confirmed that the R1 million was fully recovered and accounted for in its financial records more than two years ago.
Recent Arrest and Legal Proceedings
Mathibe was recently arrested by the Special Task Force, the South African Police Service (SAPS)’s elite unit, on suspicion of money laundering. Police found a substantial amount of cash at his home near Sandton during the arrest. He appeared before the Alexandra Magistrates Court in January and was released on R50,000 bail. On the day of his arrest, JOSCHO offices were raided, and several senior officials were questioned as part of an investigation into procurement irregularities.
Frequently Asked Questions
What was the alleged fraudulent activity?
A subcontractor allegedly submitted fraudulent photos to JOSCHO, claiming a wall had been built at Moffat View Old Age Home when, according to a letter from Anthea Leitch, Mathibe had instructed the contractor not to proceed with the work.
Was Mathibe suspended following the allegations?
No, despite a recommendation for precautionary suspension from the then CEO, Bongani Radebe, Mathibe was not suspended. He was instead promoted to acting CEO.
What is the current status of Mathibe’s legal case?
Mathibe appeared before the Alexandra Magistrates Court in January and is currently out on R50,000 bail following his arrest on suspicion of money laundering.
As investigations continue, will the findings impact the leadership structure and financial oversight within JOSCHO and the Johannesburg Development Agency?
