Appointment of Director Financial Services at Bitou Municipality

To:
MEC Bredell
The Honourable Minister of Local Government, Environmental Affairs & Development Planning
Western Cape Government

From:
Plettenberg Bay Ratepayers and Residents Association (PBRRA)
info@plettratepayers.co.za

Date:
2 June 2025

RE: Appointment and Salary Uplift of Mr. Chris Mapeyi as Director: Financial Services, Bitou Municipality

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Dear Minister,

We acknowledge receipt of your letter dated 28 May 2025, reference 13/3/1/2/K17 (3/11/2/3 – 2025/82), regarding the appointment of Mr. C.L. Mapeyi as Director: Financial Services at Bitou Municipality. We appreciate your engagement on this matter.

However, we respectfully emphasise our substantial concerns regarding the credibility and legality of the appointment process and the suitability of the candidate based on objective performance standards.

Furthermore, we can find no justifiable reason for your office to support the Bitou Municipal Manager’s request for a significant salary uplift to “lure” Mr. Mapeyi from a failing district municipality in the former Transkei to Plettenberg Bay on the Garden Route.

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1. Minimum Requirements vs Demonstrated Competence

While, as you state, Mr. Mapeyi may meet the minimum academic qualifications and years of service as stipulated in the Municipal Systems Act and associated regulations, these baseline criteria should not substitute for a demonstrated track record of ethical, effective, and technically competent financial leadership.

The Municipal Regulations on Minimum Competency Levels, particularly Regulation 5 and Annexure B of the Appointment Regulations, clearly set a threshold—not a guarantee—of suitability. Given Bitou Municipality’s financial governance challenges, it is essential that appointments at this level meet a higher standard of proven performance.

Appointments to Section 56 positions must not only be procedurally compliant but also perceived as credible and accountable to the public interest.

We therefore respectfully ask whether you are entirely satisfied that:

• An objective assessment was conducted to evaluate Mr. Mapeyi’s actual performance in prior CFO roles?

• Competency-based criteria were applied beyond tenure and qualifications?

• The composition of the interview panel was appropriate, and whether fitting technical or ethical scenarios were posed to test financial governance, compliance, leadership, accounting, reporting, control and sustainability?

• The Auditor-General’s audit history of the candidate’s previous municipality was thoroughly considered?

These are not procedural technicalities—they go to the heart of Section 195 of the Constitution, which mandates public administration that is accountable, transparent, and performance-based.

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2. Auditor-General Findings: Evidence of Systemic Failure Under Mr. Mapeyi’s Tenure

Mr. Mapeyi served as CFO at Chris Hani District Municipality (CHDM) during a period marked by financial mismanagement, control dysfunction, and audit failures. The Auditor-General of South Africa (AGSA) issued qualified audit opinions for both the 2022/2023 and 2023/2024 financial years. These reveal serious failures in core CFO responsibilities, including:

2022/2023 Audit

• R428.6m in material misstatements in revenue and receivables

• R70.6m in unsupported VAT claims

• R809.3m in cash flow errors

• R78.3m in irregular expenditure, R491k fruitless, R344m unauthorised

• R68m VAT consultancy loss and R20m in payments with no value

• Systemic internal control and compliance failures

2023/2024 Audit

• R440.9m receivables misstatements, R49m VAT errors, R113.9m water losses

• R420m cash flow errors, R98.7m unauthorised expenditure

• R75.8m irregular expenditure, R2.7m fruitless

• No action taken on prior findings, with ongoing SIU referrals

• Missed budgeted financial results by 37%

• Continued legislative and internal control failures

This reflects a systemic failure to perform core CFO functions under the MFMA, including revenue management, financial reporting, and internal auditing.

There is no evidence that Mr. Mapeyi possesses the executive leadership or technical expertise to fulfil such duties—nor to improve financial governance at Bitou, a more complex municipality.

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3. MM Memani’s Request for Salary Level Waiver

Following our letter dated 11 April, Bitou Council approved a resolution on 30 April (C/1/318/04/25) requesting you approve a salary waiver for Mr. Mapeyi to match his alleged CHDM salary of R2.4 million per annum.

Per Government Gazette 50737 (Upper Limits of Remuneration), for a Category 3 municipality:

• Minimum notch: R965,958

• Maximum notch: R1,224,083

The R2.4 million request is double the permitted amount.

Not only would this waiver increase CFO costs, but it would likely trigger salary escalations across other senior managers. We find it deeply concerning that MM Memani proposes to pay a significant premium to attract a candidate with this audit record.

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4. Conclusion and Request

We respectfully submit that this appointment does not meet the constitutional requirements for a capable, accountable, and performance-driven public service.

We request:

• An urgent review of the appointment, considering the AGSA audit record

• Full public disclosure of the selection process and competency evaluation methods

• That future Section 56 appointments require evidence of a performance track record

• That salary waivers for Bitou executives be refused or delayed until 12 months of performance is demonstrated

We note that two directors who previously received waivers—Mr. Loliwe and Mr. Felton—were evaluated in the 60th percentile. How can underperformance justify above-grade remuneration?

We urge that the public interest and fiscal responsibility guide your decisions.

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Yours faithfully,
Steve Pattinson
Chairperson
Plettenberg Bay Ratepayers and Residents Association (PBRRA)
info@plettratepayers.co.za