Imagine a public official being held personally accountable for millions lost due to mismanagement—it’s a rare but crucial step toward transparency and accountability. But here’s where it gets controversial: the municipal manager of the Ngaka Modiri Molema district in South Africa’s North West province is now facing exactly that. Allan Losaba has been ordered to repay a staggering R4.6 million (approximately $250,000) from his own pocket after auditor-general (AG) Tsakane Maluleke issued her first-ever certificate of debt (CoD) against him. This landmark decision comes after Losaba’s mishandling of a water tanker service tender, which resulted in significant financial losses for the municipality.
And this is the part most people miss: This is the first time the AG has wielded the power granted by the amended Public Audit Act of 2019, which allows her to hold officials personally liable for financial irregularities. Maluleke described the move as a “significant milestone” during her parliamentary address, emphasizing its role in deterring future misconduct. The CoD is issued only as a “last resort” after repeated failures to address the issue with the responsible official and their executive authority.
Here’s how it unfolded: In June 2018, Losaba’s municipality hired a service provider to deliver water tankers as part of a drought relief program. The contract, initially set to end in June 2020, was extended twice—first in May 2020 and again in August 2020, each time for an additional three months. However, an audit by the AG’s office revealed that the provider was inflating claims for kilometers traveled and hours worked, costing the municipality millions.
Despite being informed of the irregularity in 2019, Losaba failed to take adequate action or provide satisfactory responses to the AG. Maluleke’s decision was further justified by Losaba’s inability to recover the losses, even after being given ample opportunities to implement corrective measures. In her statement, she noted, ‘The accounting officer failed to provide justifiable reasons for his inaction, leaving me no choice but to issue the CoD for the full amount of R4,616,074.’
Now, Ngaka Modiri Molema mayor Khumalo Molefe is tasked with ensuring Losaba repays the funds by the end of December. Under the Public Audit Act, the mayor is legally obligated to collect the debt from the accounting officer. This case sets a precedent for accountability in public office, but it also raises questions: Is personal liability the best way to deter financial mismanagement, or does it place too much burden on individual officials? Let us know your thoughts in the comments—this is a conversation worth having.
