Gupta-Linked Fraud Accused Removed from Acting CFO Role in Free State Municipality

The Free State provincial government has quietly withdrawn the controversial secondment of one of its senior officials, Seipati Silvia Dhlamini, as acting CFO of the Maluti-a-Phofung Local Municipality, following renewed legal proceedings in the R25 million Nulane fraud case, a matter deeply entwined with the shadow of the Gupta family.

Dhlamini, who once served as Chief Financial Officer in the provincial Department of Agriculture, is among several high-profile accused set to face a retrial following a Supreme Court of Appeal ruling that overturned their previous acquittal.

Earlier this month, MEC for Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements, Saki Mokoena, had seconded Dhlamini to Maluti-a-Phofung to fill the long-vacant CFO post. But amid backlash and mounting legal pressure, the decision has since been reversed.

Instead, Thuso Ronald Marumo, formerly CFO of Moqhaka Local Municipality in Kroonstad, has now been seconded to the role.

Who Is Seipati Dhlamini and Why the Concern?

Dhlamini, listed as accused number three in the Nulane fraud case, stands charged alongside controversial businessman Iqbal Sharma, two former Free State Agriculture heads Peter Thabethe and Limakatso Moorosi, and Ronica Ragavan, linked to Islandsite Investments, a company tied to the fugitive Guptas.

The charges relate to an alleged R25 million scheme in which Nulane Investments — Sharma’s company — was unlawfully awarded a contract to conduct feasibility studies for the Vrede Dairy Project, later handed to Estina, another Gupta-linked entity.

Although the Free State High Court initially acquitted the group in April 2023, the Supreme Court of Appeal ruled last month that a new trial must proceed, with a different judge and as if no trial had occurred before.

A Municipality in Crisis

The decision to second Dhlamini to Maluti-a-Phofung drew criticism, especially as the troubled municipality has been under scrutiny for ongoing service delivery failures and instability.

Earlier this year, assets manager Tsietsi Moremi was temporarily appointed as acting CFO. However, that decision was reversed by the council, which instead instructed Mayor Malekula Melato to request a suitable candidate from the provincial Cogta department.

Mokoena complied but made it clear in a letter dated 10 July that any secondment must follow strict legal and financial conditions, including:

• A signed agreement detailing secondment duration, costs, and duties

• A monthly written performance report to Cogta

• Council approval via resolution

• A plan to fill the CFO role permanently

Despite initially naming Dhlamini, Mokoena later withdrew her nomination and appointed Marumo under these terms.

Fallout and Recovery Efforts

The municipal manager, Advocate Motsoahae Mofokeng, had earlier centralised CFO functions under his office in April, citing procedural concerns and the lack of a formal appointment letter for Moremi.

Now, with a new acting CFO in place and ongoing legal battles hanging over the province, questions remain about governance, accountability, and the deep-rooted influence of politically connected networks in the Free State.

Mokoena has urged the municipality to provide monthly progress reports on the filling of the permanent CFO post and the implementation of institutional recovery plans.

Municipal officials, including Mofokeng, have not responded to repeated requests for comment.

{Source: IOL}

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