The long-running Matlosana fraud and corruption saga is heading back to court, with suspended Matlosana Local Municipality chief financial officer (CFO) Mercy Phetla and her co-accused set to appear on Wednesday, November 19, in the Klerksdorp Specialised Commercial Crime Court.
National Prosecuting Authority (NPA) North West spokesperson Sivenathi Gunya confirmed that Phetla and five co-accused — Anga Ludidi Shongwe, Tiisetso Letlhogonolo Sebetlele, Josephine Tsimane, Mathapelo Puswe, and Vincent Shongwe — face charges of fraud, corruption, and money laundering.
Luxury cars worth millions forfeited
In September, Acting Judge Tebogo Maodi ruled that co-accused Shongwe and Sebetlele must forfeit three high-end vehicles linked to the alleged crimes under the Prevention of Organised Crime Act (POCA). The seized cars include:
• A black Maserati Levante S M156
• A red Mercedes-Benz CLA200
• A silver/grey Range Rover
According to the Hawks and the NPA, the vehicles are valued in the millions.
The forfeiture order — applied for by outgoing National Director of Public Prosecutions (NDPP) Shamila Batohi — was issued to allow any other interested parties to come forward. Records indicate that Shongwe resides in Orkney and Sebetlele in Jouberton.
Municipality funds allegedly used to buy luxury vehicles
The charges relate to payments made by the Matlosana Municipality to a service provider, Variegated (Pty) Ltd, which allegedly received over R6 million for services that were never delivered. Investigators later uncovered that more than R4 million was redirected from Variegated to a car dealership to purchase luxury vehicles — including a Porsche valued at R2.3 million, a Maserati at R1.4 million, and a R1 million Range Rover.
Under POCA, once a preservation order is granted, the NDPP may apply for full forfeiture of the assets to the state. Those with an interest in the seized property have 14 days to oppose the order or present evidence to protect their stake.
CFO suspended twice amid ongoing investigations
The municipality — currently under mandatory constitutional intervention due to financial instability — initially suspended Phetla in 2024 after she was charged with corruption and fraud.
Although she was reinstated after a forensic investigation, further allegations emerged. In April 2025, the municipality initiated new disciplinary proceedings against her, alongside the ongoing criminal case.
The latest intervention report noted:
“The CFO was reinstated to her position. However, in April 2025, the municipality instituted disciplinary proceedings for other acts of misconduct, and the proceedings are still pending, including criminal charges still before the courts.”
The case continues to shine a light on deep governance failures in the Matlosana Municipality, where financial mismanagement has long been a point of public concern.
