Appointment of Director of Finance

8 January 2023

Dear Mayor Swart,

Thank you for your letter of the 5th informing us of your repudiation of Mr Mapeyi’s contract.

We understand that unilateral repudiation of an employment contract may not be legally sufficient to terminate the contract. Accordingly, please confirm if  Mr Mapeyi has accepted the termination in writing and if not, please inform us of any subsequent developments and what legal and financial risks may your repudiation of the contract pose to the municipality?

While we are pleased that an unsuitable senior leadership appointment may have been averted, we are most concerned about the decision making process followed by both the selection committee as well as the recruiting consultancy. Kindly urgently provide the documentation that we have requested of you on multiple occasions so that we can understand the process that led to the appointment of Mr Mapeyi .

We believe there are significant lessons to be learnt from what appeared to be a flawed process, but  in the absence of documentation, it is difficult for us to understand how such a process was conducted. A thorough review of this process and bringing to book the culpability of the players to whom this task was delegated, should be a priority of your administration, the results of which we request be shared with our Association.

Also, as a result of the critical nature of hiring competent senior leaders, we urgently require an understanding of what measures have been taken to strengthen the recruitment process for senior appointments in response to the obvious shortcomings identified?

We would also ask that that you personally, as Mayor, take an active and authorising role in the selection and appointment  of any future senior leaders and on the committee that considers and recommends such senior appointments in the future.

In conclusion, we trust that the search for the CFO henceforth will be conducted through a proven recruiting agency and focus on individuals with unblemished records and experience in turning around a municipality in financial distress.

Finally, may I remind you to please provide the documentation in regard to this matter that we have requested repeatedly in recent weeks.

Kind regards,

Peter Gaylard

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Hello Mr Gaylard

With reference to your correspondence below, financial statements are usually only signed off some time after the financial year end once they have been compiled and verified and not on the actual day of the year end.

As the CFO at the time of the documents being signed off he will be indicated as CFO in the document.

According to his application to BM he joined CHDM on 1 July 2021.  Due diligence for all candidates was done by a privately contracted consultant.

However, as indicated in a mail sent to you earlier today, Mr Mapeyi did not report for work on 3 January 2023 and will no longer be joining Bitou Municipality.

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From: Plett Rate Payers <info@plettratepayers.co.za>

 

4 January 2023

Dear Mayor Swart,

Appointment of Director of Finance 

My earlier letter, dated 17^th December, our telephone conversation on 28^th December and my email to you on the same day refer.

During our telephone conversation, you advised me that Mr Mapeyi was only appointed as CFO of the Chris Hani District Municipality (CHDM) with effect from 1^st July 2021 so was not responsible for the poor financial management and performance of the Municipality during the year ended 30^th June 2021, despite the fact that his name appears on the cover sheet of the annual financial statement for that year as CFO.  (I forwarded you a WhatsApp message containing a scan of the relevant page).  I also pointed out to you that the unaudited annual financial report for the CHDM for the subsequent year ending 30 June 2022 was also very poor and did not reflect well on those responsible for its preparation.  I forwarded a copy of the report to you that evening by email. 

In my initial letter, I expressed our serious misgivings about the appointment of Mr Mapeyi as Director of Finance.  Despite your verbal response to my letter, we as Ratepayers continue to have concerns about Mr Mapeyi’s appointment and his ability to provide the financial leadership Bitou so urgently needs.  At present, the only information we have on which to base our assessment of his abilities is the unaudited financial report for the CHDM for the year ended 30 June 2022, which does not inspire confidence.  You stated over the phone that Mr Mapeyi resigned from the CHDM because it was such a mess, which also doesn’t inspire confidence in his ability to accept challenges in his work!  One is forced to ask the obvious question: will he find that the financial situation in Bitou is too difficult to remedy and resign after a year, or as soon as another offer arises? 

We understand that considerable emphasis has been placed on Mr Mapeyi’s previous experience in two provincial roles, in the Western Cape and in the Eastern Cape.  Could you please let us have his job descriptions and performance records in those two roles, as it is unclear whether those particular positions required the level of financial expertise needed by a Chief Financial Officer in a municipality the size of Bitou?

In order to enable us to obtain a clearer understanding of Mr Mapeyi’s capabilities, and to ensure that we provide correct information to our members, please provide us with the following information:

• Copies of Mr. Mapeyi’s application form
• Copies of Mr Mapeyi’s CV
• A copy of Mr Mapeyi’s contract with Bitou
• The names and affiliations of the members of the selection committee

This is all public information and we request your response by Friday, 6^th January 2023.

I look forward to your reply.

Kind regards,

Peter Gaylard

Chairman

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From: Executive Mayor David John Swart

Hello Mr Gaylard

Your below mail refers.

I have had a chance to look at your comments below and note that the report by the Auditor General for the year ended 30 June 2021 was in fact for the period prior to Mr Mapeyi joining Chris Hani District Municipality.

According to information provided, Mr Mapeyi in fact joined CHDM municipality on 1 July 2021 thus was not CFO during the period of the report as alleged in your correspondence below.

This report then relates to the CFO that was in office prior to Mr Mapeyi joining CHDM.

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Dear Mayor Swart,

Appointment of Director of Finance

During our meeting last week, you informed us that Christopher Mapeyi, formerly CFO for the Chris Hani District Municipality (CHDM), will assume duties as CFO for Bitou on January 1, 2023.

This is a critical appointment for Bitou, considering our current financial situation  and especially the difficult road ahead to ensure speedy implementation of the financial recovery plan.  For this reason and for those set out below, I am writing to express our serious concern, as the Ratepayers’ Association, regarding the appointment of Mr Mapeyi.

We have conducted a brief review of Mr Mapeyi’s track record at CHDM.  In particular, we studied the most recent Auditor General’s report for the CHDM, completed in June 2021 and signed by the Auditor General in January 2022.  A copy of the report is attached for your information and ease of reference.  Mr Mapeyi was CFO during the period covered.  The audit report is very damning as the Auditor General was unable to express any opinion on any aspect of the financial results and made reference to criminal and forensic investigations related to tender irregularities.

A further examination of the preliminary, unaudited financial report for the year ended June 2022, during which Mr Mapeyi continued as CFO, showed there had been no improvement in the quality of the reporting, nor of the financial situation in the CHDM, since the audit findings were released.

In view of the above information, we have questions about the recruitment process for Mr Mapeyi:

• Who were the members of the Selection Committee and who signed off on the final decision?
• What due diligence was conducted on the candidate’s background and track record?
• Did the candidate disclose the above issues and investigations in his application?
• Were these issues raised by the Selection Committee before a job offer was made?
• Were all municipal protocols followed?
• What criteria were assessed and how did the candidate score against other contenders?
• May we please have a summary of his qualifications and previous experience?

We appreciate the urgency of making this appointment to your senior management team, knowing the pressure you are under to effect a financial turnaround.  However, as stated above, we have serious concerns over the rationale and rigour applied in the selection of this candidate. He appears to lack the credentials to fulfil the role of CFO for Bitou, more so considering the financial sustainability challenges we face.

All of us at Bitou deserve so much better and I look forward to your urgent reply to this letter.

Kind regards,

Peter Gaylard