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Bitou saga — DA wins court bid to set aside municipal manager’s R4m golden handshake

Bitou saga — DA wins court bid to set aside municipal manager’s R4m golden handshake
Suné Payne
By Suné Payne
23 Oct 2024
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In another twist in the chaotic Bitou Municipality saga, the courts have overturned former municipal manager Mbulelo Memani’s termination settlement agreement. But the controversial manager had already returned to work under the new DA administration.

The Bitou Municipality’s R4-million settlement with former municipal manager Mbulelo Memani has been set aside by the courts as questions continue over his reappointment to the role.

The municipality confirmed to Daily Maverick there would be a special council meeting to discuss the recent court judgment setting aside the mutual termination.

Months after his termination, Memani was employed by the same municipality as acting municipal manager – following a change in the council’s political leadership.

The Democratic Alliance (DA) went to court to overturn the R4-million settlement, which was entered into by former Plett Democratic Congress (PDC) mayor Claude Terblanche, on behalf of the council. According to Terblanche, the settlement was reached after Memani had been suspended on allegations of misconduct.

Bitou is located in the picturesque Garden Route region of the Western Cape. The municipality covers Plettenberg Bay, Nature’s Valley and Covie. 

Read more: Return of Bitou municipal manager who left with R4m settlement is above board, says DA

The court case


Memani was appointed as Bitou municipal manager in April 2022 as municipal manager under a DA-led coalition, which collapsed in February 2024, leading to Terblanche’s appointment.

Terblanche suspended Memani earlier in 2024 on charges of misconduct, which included sowing division within the municipal administration. 

The DA, which was then in opposition, turned to the courts in July to have Memani’s termination and the settlement reviewed. The DA argued the termination should be set aside and that Memani should instead face internal disciplinary processes if there were legitimate allegations of misconduct. 

On 18 October, the Western Cape High Court set aside the decision for the municipality to enter into the mutual termination agreement, and the termination itself was revoked.

According to the judgment, Memani is ordered to repay the full mutual termination agreement payment and the law firm that represented him needs to repay the municipality the full amount it received in connection with the mutual termination agreement. 

Memani had, however, already returned to work as the acting municipal manager.

In August 2024, Terblanche, with other senior leaders, was removed via motion of no confidence in favour of a DA coalition. The Garden Route municipality is now led by a DA’s Jessica Kamkam, who is the third mayor this year.

Read more: Jessica Kamkam – Bitou’s third mayor this year hopes to restore dignity to the people

Days after the DA returned to power, Memani returned as acting municipal manager on a three-month appointment.

When Daily Maverick asked the municipality for comment on the court judgment, including comment from Memani about the case and how the municipality would respond, spokesperson Andile Namntu, said: “The court order was received on 22 October 2024 from the High Court Registrar, the Legal Services Manager addressed the correspondence to the Executive, and a Special Council Meeting will be held soon to consider the judgment and way forward.” 

It’s unclear whether Memani will face disciplinary action over the claims that led to his termination.

In a statement, Kamkam welcomed the judgment, “This ruling underscores the importance of adhering to proper legislative procedures when dealing with senior officials in municipal governance. The DA remains steadfast in its mission to uphold integrity and accountability within all levels of government.”

Provincial involvement 


ANC councillor Samkele Mangxaba wrote to Western Cape MEC for Local Government Anton Bredell about the situation in the municipality.

He questioned why Memani had been re-employed in the position, when according to law, he claimed, “a former municipal manager who has received a severance package may not be re-employed by the same municipality within 12 months of leaving the employ of the municipality”. 

According to Mangxaba’s letter, which Daily Maverick verified and has a copy of, he wrote: “I am of the view that no legislation was consulted, and your office’s intervention would greatly assist this council with a sense of direction, facilitate good governance and help the municipality retain its good public image.”

In response, Bredell wrote that the municipality had until close of business on Monday, 21 October to explain the situation.

When asked this week if the municipality had responded to Bredell’s request, his spokesperson Wouter Kriel said, “No, the Office of the MEC for Local Government has not yet received a reply.”

“We recognise the principle of democracy within the local government environment, and as such each municipality must be seen and respected as an independent sphere of government. However, we will be concerned if these changes impact upon effective governance and accountability,” Kriel said.

Memani’s municipal moves


Memani was first appointed in Bitou as a senior manager for budget and treasury between 2012 and 2016. He then left to work next door in Knysna Municipality as its chief financial officer.

He courted controversy there, facing questions on why R11-million was spent on water meters in November 2022, allegedly without authorisation, while there was no budget for it and the user department did not want the meters.

Susan Campbell, the former chairperson of the Knysna Ratepayers’ Association and a councillor for the Knysna Independent Movement, said Memani resigned before a misconduct investigation and disciplinary processes against him were concluded.

Read more: Former Knysna CFO Mbulelo Memani bags new Bitou job despite incomplete disciplinary hearing and trail of complaints

He would then leave Knsyna for the Cederberg Municipality. Die Son reported that he had been met with protestors unhappy with his appointment, raising his tenure at Knysna as a reason for their unhappiness. 

Bitou’s new PA councillor


Meanwhile, the Patriotic Alliance (PA) has announced who will replace Hein Mitchell as councillor in Bitou.

Party leader Gayton McKenzie announced that the party’s MP Katrina de Bruin, who is from Bitou, will take up the seat left behind after Mitchell’s expulsion earlier in October, following allegations that he accused party leaders in Bitou of “plotting against him”, as reported by The Herald.

McKenzie made the announcement last week on social media, during a Facebook Live meeting with party supporters. DM

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