-Staff Writer / 26, Wed Nov 2025
The Rustenburg Local Municipality in the North West is in serious trouble with the Auditor-General(AG) Tsakani Maluleke’s provincial based office following a multimillion-rand out of court settlement.
This after the provincial business unit office distanced itself and clarified that it did not endorse, engage on, or audit a proposed out-of-court settlement relating to two material irregularities previously flagged in the Rustenburg Local Municipality’s fleet management services.
This relates to a court matter where the Rustenburg municipality opted for an out of court settlement in matter involving R156 million deal. It’s said that the the municipal manager Ashmar Khuduge ignored and withdrew from a winnable case and instead opted for a settlement with the KSP group.
In a letter addressed to the North West Rustenburg Municipality’ Speaker of Council, Ciuncillor( Cllr) Lebogang Pule, dated 24 November 2025, the AGSA’s North West Senior Manager, Johannes Mohlopi, said the audit office had become aware that the municipality’s leadership intended to settle the matters out of court.
The proposed settlement was discussed with service providers and is expected to be tabled before council on 25 November 2025.
The material irregularities (MI) 01 of 2021 and (MI) 02 of 2021 were first issued to then accounting officer, Mr V. Makoma.
The first related to the procurement of fleet services not included in the original tender, while the second involved payments exceeding market value, resulting in likely financial losses to the municipality.
Makoma previously informed the AGSA that the issues had been referred to the Hawks for investigation, with criminal proceedings underway. He also indicated that civil recovery processes were being pursued, with the municipality’s lawyers confirming a trial date for 7 November 2024.
Based on this, the AGSA concluded on 7 May 2024 that reasonable steps had been taken to address the irregularities, as the outcomes of investigations and court processes were beyond the accounting officer’s control.
However, Mohlopi noted concern that item 62 of the municipality’s agenda claimed that the AGSA had been informed of the intended settlement and was awaiting the outcome.
He stressed that the audit office “did not formally engage with the accounting officer” on the settlement proposal and that its earlier decision to resolve the irregularities was premised on ongoing Hawks investigations and court action, not negotiations for settlement.
“We have neither endorsed nor audited the proposed settlement,” he said, adding that any settlement reached would be subjected to the normal audit process once concluded.
It’s also understood that there was a council sitting which was planned for Monday, 24 November 2025 but the sitting failed. The much anticipated sitting collapsed after an alleged technical issue. A reliable source on the upper echelon said this could be a delaying tactic to deny the council an opportunity to deliberate on the issues that could land the municipal manager and others into trouble.
News Junction (Gold Standard)