MBABANE – A Commission of Inquiry into the affairs of the Hlathikhulu Town Board has recommended possible criminal investigations, recovery of public funds and forensic procurement probes following shocking findings of maladministration, conflicts of interest and financial irregularities at the local authority.
The recommendations are contained in the final report presented to the Ministry of Housing and Urban Development after months of investigations into governance failures and unlawful administrative practices at the town board.
Commission Chairperson Zandile Dhlamini stated that the responsibility now rested with relevant authorities to urgently act on the recommendations in order to restore accountability and public trust.
“The responsibility now rests with the relevant authorities to act upon these recommendations with urgency and resolve. In doing so, we will not only safeguard the integrity of the Hlathikhulu Town Board but also reaffirm our collective commitment to accountable, transparent and people-centred governance,” she said.
The commission found what it described as a “sustained breakdown of lawful governance” characterised by weak oversight, blurred accountability, informal decision-making and disregard for legal procedures.
One of the most serious findings involved procurement arrangements linked to Accountant Artwell Phesheya Dlamini and his spouse. The commission recommended that the Ministry, through the Auditor General’s office, institute a forensic procurement and payment investigation into companies linked to the couple, namely PHD Stationery and Liks Boutique.
The probe is expected to investigate tender processes and compliance, pricing irregularities, payment approvals, contract authenticity and conflict-of-interest declarations covering the period from 2018 to 2025.
The commission further recommended recovery action should overpricing, unjust enrichment or irregular expenditure be established.
Evidence before the inquiry revealed that the accountant and his wife’s companies allegedly benefited from repeated supply contracts over several years under questionable procurement processes.
The commission heard that Liks Boutique supplied protective clothing and uniforms to the town board through contracts allegedly renewed through telephone communication without open tender procedures. The company director, Lindelwa Mamba, testified that the Town Clerk informed her telephonically that she had secured the contract and renewals continued for years without formal procurement processes.
The inquiry also established that PHD Stationery, owned by Dlamini himself, had been supplying the town board since 2018. The commission noted inconsistencies in contract dates, weak tender documentation and testimony that shifted under questioning.
According to the report, the procurement arrangements were characterised by verbal awards, telephone renewals, inconsistent documentation and inflated pricing indicators.
The commission also found that councillors were unaware that the accountant and his spouse owned companies supplying the board until auditors raised concerns. Board members testified that they were shocked by the revelations and later resolved to suspend procurement from the two companies.
The report stated that management failed to disclose critical information needed by councillors to exercise proper oversight.
Beyond procurement irregularities, the inquiry uncovered broader governance failures across the institution.
Reports have suggested that Approximately E7 million in public funds reportedly remains unaccounted for due to opaque decision-making and poor documentation. The commission further found that board oversight structures were weak, finance committee controls ineffective and minutes incomplete or missing.
Human resource records were also found to be inadequate while key policies were absent.
The report painted a troubling picture of a municipality operating outside legal frameworks, with decisions allegedly driven by personalities rather than systems.
The commission also found that the town board was financially distressed, understaffed and at risk as a going concern. Public facilities such as marketplaces and toilets were described as deplorable.
The inquiry additionally exposed irregular land allocation practices, unlawful construction approvals and serious non-compliance in valuation roll processes.
The commission recommended decisive intervention, including disciplinary measures and criminal investigations where necessary.
The commission warned that failure to urgently address the issues would continue exposing government to legal and financial risks while further eroding public confidence in local governance.
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