Court stops Steve Tshwete from taking former CFO’s pension fund over fraud allegations

Middelburg — The former Chief Financial Officer (CFO) of the Steve Tshwete Local Municipality has welcomed a High Court ruling that prevents the municipality from accessing his pension benefits while fraud-related claims remain unresolved.

The Mpumalanga High Court in Middelburg backed David Mogofe’s efforts to contest an interdict and restraining order that was issued to block the National Fund for Municipal Workers (NFMW) from releasing his pension benefits.

On 19 September 2024, the municipality filed a civil suit against Mogofe seeking to recoup a total of R6,222,500.00, which they claim represents wasteful and irregular spending accrued during Mogofe’s time in office.

Mogofe resigned on 27 March 2024 following a precautionary suspension linked to an internal forensic investigation into alleged misconduct. The resignation follows his acceptance of a new position as Chief Operating Officer (COO) at the Emfuleni Local Municipality in Vanderbijlpark, located in Gauteng. Puseletso Melato has since been appointed as CFO.

A forensic investigation carried out by Nextflex has brought to light claims of fraud, theft and dishonesty. The findings suggest that the former CFO deceived the municipal council and neglected to stop unnecessary and improper spending. Additionally, the report indicated that he had not performed his duties with the necessary care, diligence or commitment regarding procurement and payments concerning Masenyeletje and Security Services (Pty) Ltd, as well as the recommendation report presented to the municipal council regarding the funding agreement established between the National Empowerment Fund (NEF) and the municipality.

The municipality highlighted issues regarding the CFO’s negligence in handling the payment for the Mhluzi Intake Substation and the misleading information provided to the council regarding financial statements related to the funding agreement with the NEF.

In its court documents, the municipality contended that the CFO’s actions led to an administrative burden of R1 million, which arose immediately after the R20 million was deposited into the NEF bank account. They also pointed out that Mogofe neglected to report the R1 million administrative fee charged by NEF as an expense in the municipality’s annual financial statements, thereby violating section 122 of the Municipal Finance Management Act (MFMA).

The municipality also claimed that R5 222 500 was improperly paid to another security company.

The court dismissed the application and directed the municipality to pay the legal fees.

On 26 November 2025, Judge J Mankge ruled in favour of Mogufe, citing: “The failure of the applicant [municipality] to file criminal charges against the first respondent [Mogofe], as noted in the Special Municipal Council’s April 2024 resolution, supports this conclusion.”

The judgement also made it clear that the municipality did not adequately demonstrate valid reasons to claim entitlement to the first respondent’s pensions. It further indicated that the municipality fell short in providing enough evidence to establish a prima facie link between Mogofe and allegations of fraud, theft and dishonesty—key factors under both the Pension Fund Act and the Consolidated Rules.

“I’ve always been aware that I’m not guilty, despite how some people are portraying this situation,” Mogofe said. “I’m relieved that the matter navigated through the court system and was evaluated based on the evidence presented,” Mogufe said.

Mogofe added that he wasn’t afforded the opportunity to share his perspective during the investigation’s proceedings which the report took shape from. “I was never called, nor was I interviewed by the investigators,” Mogofe remarked.