IN HOT WATER: Moqhaka Local Municipality Municipal Manager, Portia Tshabalala.
Picture: Moqhaka Facebook
By: JN Reporter
The Municipal Manager of Moqhaka Local Municipality, Portia Tshabalala, is reportedly facing imminent arrest following serious allegations of financial misconduct involving more than R221 million unlawfully paid to a security company that allegedly did not qualify for the tender. Law enforcement agencies are said to be finalising the case, with an arrest expected soon as investigations have been completed.
This development follows President Cyril Ramaphosa’s signing of Proclamation 163 of 2024 in April last year, authorising the Special Investigating Unit (SIU) to probe the Moqhaka Municipality’s contracting of Isidingo Security Services.
According to a confidential referral affidavit dated September 2025, which contains the full SIU investigation report and is in the possession of Journal News, Tshabalala unlawfully appointed Isidingo Security Services, a KwaZulu-Natal-based company, that allegedly failed to deliver the physical armed security services for which it tendered.
The municipality ultimately paid the security company more than R221 million over three years for a tender originally valued at R87 million.
This expenditure exceeded the contract value by 66%, significantly higher than the 15% provision allowed for in the municipality’s 2018/2019 supply chain management policy. Journal News has been reliably informed that the Special Investigating Unit (SIU) has submitted its report to the National Prosecuting Authority (NPA), recommending criminal prosecution against Tshabalala. “The matter has been handed over to the NPA for prosecution. I can confirm that the NPA is currently in possession of the report, and the arrest of the Municipal Manager can be expected soon,” said a source close to the investigation.
The SIU report has flagged several irregularities in the appointment and management of the contract. Key findings include that Isidingo Security Services’ firearm licence had already expired at the time of appointment on January 17, 2020. This means they couldn’t legally deliver the required armed security. Furthermore, as a Durban-based company, Isidingo didn’t meet the requirement for locality preference.
The SIU report also highlights a conflict of interest: on October 17, 2019, Tshabalala, as a member of the Bid Adjudication Committee (BAC), recommended Isidingo as the preferred bidder, and then proceeded to appoint the company in 2020 when she became the acting Municipal Manager (MM). Although she declared her prior involvement with the BAC, the report states this constitutes a conflict of interest under the Municipal Systems Act 32 of 2000.
Additionally, Tshabalala didn’t seek council approval for the contract extension, which ran for over a nine-month period, and she continued to renew the contract until February 28, 2023. The tender’s validity period of 90 days had also expired at the time of Isidingo’s appointment, and an uncertified lease agreement submitted by Isidingo was accepted, even though two other service providers were disqualified for failing to submit a compulsory certified lease agreement.
The SIU report concludes that the appointment of Isidingo constitutes irregular expenditure, and the contract extension amounts to unauthorised expenditure. “Evidence reveals that the appointment of Isidin go by the MM for the provision of physical armed security awarded was irregular and unlawful and in contravention of Section 217 of the Constitution of South Africa,” the report states, adding that the MM’s conduct is “unacceptable, unethical, unlawful, (and) irregular”.
The report also suggests that the NPA should consider instituting criminal charges against Tshabalala for contravening the Municipal Finance Management Act (MFMA), stating that the MM’s conduct is a criminal offence in terms of the MFMA.
However, Journal News contacted the NPA spokesperson in the Free State, Mojalefa Senokotsoane, who clarified the NPA’s mandate. “Unfortunately, the NPA does not make arrests. Our mandate, as guided by the NPA Act and the Criminal Procedure Act, is to prosecute cases brought before the courts.” Senokotsoane stated that the NPA is “not in a position to comment on any matter until a suspect has been charged, arrested, processed, and has made their first appearance in court.”
He advised that the appropriate law enforcement agency to engage is the South African Police Service’s Directorate for Priority Crime Investigation (DPCI/Hawks), as they are “best placed to confirm whether there are any pending arrests”.
