ActionSA Exposes AGSA–Centlec Cover-Up Scandal in Free State

ActionSA is outraged by explosive whistleblower allegations revealing deep-rooted collusion between senior officials at Centlec and the Free State division of the Auditor-General of South Africa (AGSA). These claims expose a calculated effort to manipulate audit outcomes, conceal fraud, and protect the powerful, while ordinary residents continue to suffer under failing municipal governance.

According to information received by ActionSA, senior AGSA Free State figures – including Chief Auditor Nthako Saohatsi – actively collaborated with Centlec employees and consultants to falsify audit outcomes and sanitise reports that should have exposed widespread financial mismanagement and fraud within the municipal entity.

Allegations include:

  • Chief Auditor Nthako Saohatsi, reportedly appointed without meeting minimum qualifications, used her position to shield Centlec’s CEO and suppress audit findings on serious irregularities, including the illegal denial of leave reimbursements to dismissed staff under the CEO’s instruction.
  • Sam Zziwa, a former AGSA FS employee turned Centlec insider, and Zoe Williams, a former PwC auditor and now reinstated CFO, allegedly colluded with AGSA to manipulate audit reports. Their interference reportedly secured Centlec unqualified audit opinions despite financial conditions warranting a disclaimer.
  • The AGSA FS audit team, particularly under Sam Zwane, must explain how this level of collusion with Centlec officials was allowed to persist unchecked for years.
  • Zoe Williams, whose earlier termination cost Centlec roughly R2 million in legal fees due to irregular expenditure, has inexplicably been reappointed as CFO by the same Board that continues to fail in its oversight role.
  • The current Centlec Board, chaired by Casca Modise Mokitlane, is described by insiders as the worst in the entity’s history, lacking independence, accountability, and technical capacity.
  • Allegations of cronyism and political favouritism are rife, with family members of senior officials and allies of the CEO reportedly rewarded with jobs for aiding in the dismissal of whistleblowers and critical staff.
  • LQ Technologies, a company allegedly linked to Bernard Phitsane, is implicated in repeated technical failures affecting Centlec’s vending system, yet continues to receive contracts from the entity.

Further allegations suggest that key executive appointments — including Justice Mojaje (Executive Engineering Wires) and Boitumelo Motswene (Executive Engineering Retail) — were driven by political and regional loyalties rather than merit. AGSA FS failed to flag these irregular appointments.

The dismissal of Katleho Koao from Centlec’s finance department is believed to have been retaliatory, based on unproven accusations of leaking information. Ironically, Koao had previously assisted Zoe Williams during her earlier tenure, when she herself was reportedly the source of leaks targeting ANC officials.

ActionSA demands the following:

  • Immediate intervention by the national AGSA office to audit and investigate its Free State division’s handling of Centlec reports over the last five years.
  • Referral of Chief Auditor Nthako Saohatsi to the Independent Regulatory Board for Auditors (IRBA) for gross misconduct and collusion in fraudulent practices.
  • A full forensic investigation into the reappointment of Zoe Williams and the expenditures related to her previous legal case.
  • Immediate suspension of Centlec’s CEO Malefane Sekoboto pending a parliamentary inquiry into governance failure and abuse of power.
  • Dissolution of the Centlec Board chaired by Casca Modise Mokitlane for gross dereliction of duty and failure to exercise independent oversight.

This scandal is not just about Centlec. It is about the collapse of ethical oversight, the corruption of professional standards, and the abuse of public institutions for personal and political gain.

It is also yet another example of ANC-run municipalities protecting cadres over communities. It reflects a broader governance crisis in the Free State, one enabled by compromised oversight structures and political shielding.

ActionSA will urgently petition the national AGSA office, IRBA, the Minister of Cooperative Governance and Traditional Affairs, and the Public Protector to intervene. We will not rest until every official implicated in this institutional rot is held to account.

The people of Mangaung deserve better. South Africa deserves better.

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