The R1 million wall that never stood and the questions hanging over JOSHCO

In a city battling housing backlogs, decaying infrastructure and tight municipal budgets, R1 million is not small change. It could fix leaking roofs, restore broken lifts in social housing blocks or secure a vulnerable facility.

Instead, that money was paid out for a wall that, according to investigators, was never built.

And now, the controversy has put one of Johannesburg’s top housing officials under an uncomfortable spotlight.

The wall that wasn’t there

At the centre of the storm is the Johannesburg Social Housing Company (JOSHCO), the City of Johannesburg entity tasked with providing affordable rental housing.

A letter written in December 2023 by then Human Settlements MMC Anthea Leitch alleges that Themba Mathibe at the time JOSHCO’s Chief Operating Officer signed off on a payment of about R1 million to a subcontractor for the construction of a wall at Moffat View Old Age Home.

There was just one problem: the wall was never built.

According to the allegations, the subcontractor was paid and later submitted photographs as proof of completion. But those images allegedly showed a wall constructed elsewhere. The contractor reportedly arrived at the site to start work, only to be instructed by Mathibe not to proceed.

For many Joburg residents, this detail has been particularly jarring. On social media, users have questioned how a payment of that size could be approved without physical verification of the work. “In Joburg, even ghosts get paid,” one X (formerly Twitter) user wrote, reflecting the frustration that often follows municipal scandal.

Internal alarms and a forensic probe

The payment triggered an internal investigation within JOSHCO. Soon after, the Johannesburg Group Forensic Investigation Services (GFIS) was brought in to probe the discrepancies.

Leitch’s letter further alleges that Mathibe interfered in the investigation by arranging for the contractor to repay the R1 million without consulting his superior or seeking legal advice. The concern raised was that engaging the contractor directly, while a forensic probe was underway, could amount to interference.

GFIS had already been tasked with investigating the matter when the attempt to recover the funds was allegedly made.

JOSHCO, however, disputes key aspects of that narrative.

In response to media queries, the entity stated that the service provider involved was blacklisted and that the R1 million paid out was fully recovered and properly reflected in its financial records more than two years ago. The entity also said the project manager responsible for the misrepresentation admitted to misconduct during questioning.

Importantly, JOSHCO maintains there was no prima facie evidence that justified suspending Mathibe.

The suspension that never happened

Despite the serious tone of the December 2023 letter, and the board noting the intention of then-CEO Bongani Radebe to place Mathibe on precautionary suspension, that suspension never materialised.

Instead, Mathibe was promoted. He now serves as acting CEO of JOSHCO and is also the CEO of the Johannesburg Development Agency (JDA), reportedly earning R3.3 million a year.

According to JOSHCO, only the CEO has the authority to suspend an executive. The entity said precautionary suspension is typically considered when there is a reasonable belief that an employee may interfere with an investigation or influence witnesses. In this case, JOSHCO argues, the investigation was already well advanced and material facts had been established.

For critics, that explanation hasn’t landed well. The optics an official linked to a controversial payment later elevated to top leadership have fuelled public scepticism.

Johannesburg has, after all, seen its share of governance crises across city entities. Residents living in social housing units have long complained about maintenance delays and accountability gaps. Against that backdrop, even recovered funds don’t easily erase public distrust.

A dramatic arrest raises the stakes

The issue might have remained a contained governance dispute until Mathibe’s recent arrest.

The Special Task Force, an elite unit within the South African Police Service (SAPS), arrested him on suspicion of money laundering. Police confirmed that during the arrest at his home near Sandton, a substantial amount of cash was found.

Earlier that day, law enforcement raided JOSHCO’s offices in Braamfontein and questioned several senior officials as part of an investigation into alleged procurement irregularities.

Mathibe later appeared in the Alexandra Magistrates Court in January and was released on R50,000 bail.

It is not yet clear how or whether the alleged money laundering case directly intersects with the so-called “phantom wall” matter. But in the court of public opinion, the two have become intertwined.

The bigger picture: trust and transparency

At its core, this isn’t just about a wall.

It’s about governance at entities responsible for some of the city’s most vulnerable residents, pensioners, low-income families and tenants relying on social housing.

When R1 million can be approved for work that allegedly never took place, residents naturally ask: What else slips through the cracks? How strong are internal controls? And who is ultimately accountable?

While JOSHCO insists the funds were recovered and the service provider blacklisted, the case underscores deeper structural concerns in municipal procurement systems, from project oversight to consequence management.

For a city trying to rebuild trust after years of political instability and administrative churn, these questions matter.

As the legal process unfolds, Johannesburg residents will be watching closely. Because in a city where every rand counts, even a wall that never stood casts a long shadow.

{Source: EWN}

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