Themba Mathibe, the CEO of the Johannesburg Development Agency, was arrested last week on money laundering charges but remains in his position. The City of Johannesburg maintains that governance processes are being followed separately from the criminal case. Opposition critics question the decision amid ongoing investigations.
Themba Mathibe, chief executive officer of the Johannesburg Development Agency (JDA), was arrested at his home by the South African Police Service last week during a search-and-seizure operation. The arrest stems from an investigation into alleged procurement irregularities, leading to money laundering charges. He appeared in the Alexandra Magistrates’ Court and was released on R50,000 bail, with authorities noting a substantial amount of cash in his possession.
Despite the charges, the City of Johannesburg has confirmed that Mathibe continues to perform his duties as the substantive CEO of the JDA. City spokesperson Nthatisi Modingoane stated that there has been no interruption in the agency’s operations, no suspension of projects, and no basis at this stage to change leadership arrangements. "Employment and governance processes had to be allowed to run their course, separate from the criminal justice process," Modingoane said.
The city rejected claims of dual salaries during Mathibe’s prior acting role at the Johannesburg Social Housing Company (Joscho), which ended on 31 January. It emphasized no adverse findings from audits or the Auditor-General. Further investigations into the procurement issues are ongoing, running parallel to municipal decisions.
The Democratic Alliance (DA) has voiced strong criticism. Shadow MMC for development planning Daniel Schay argued that retaining Mathibe undermines public confidence. "While the presumption of innocence applied, retaining an arrested and charged CEO at the helm of the JDA undermined public confidence and warranted clearer justification and transparency," Schay said.
This situation revives earlier controversies over Mathibe’s June 2024 appointment as JDA CEO. At 28 years old, he did not meet the initial 10-year experience requirement, which the board reduced to five years. The DA, led by Schay, had questioned the process’s transparency and compliance with the Municipal Systems Amendment Act. The city defends the appointment, citing improved performance, progress on stalled projects, and better audit outcomes under Mathibe’s leadership.
Joscho, where Mathibe was previously chief operating officer and acting CEO, has its own history of scrutiny, including a forensic probe into a fraudulent payment, though Mathibe faces no direct accusations there.
