Spokesperson for Free State Premier Maqueen Letsoha-Mathae (image)
By Thabo Mosia
The National Department of Transport has launched a legal bid to overturn a controversial R4.3 million settlement paid to Controversial Matshediso Setai, who now serves as spokesperson for Free State Premier Maqueen Letsoha-Mathae. This move comes years after Setai’s dismissal from the department following a forensic probe that uncovered multiple procurement irregularities and acts of dishonesty. The case sheds light on ongoing concerns about accountability in public service, with the settlement now under scrutiny for being potentially invalid since it was made after her firing. As the matter heads to court, it raises questions about hiring practices and the handling of past misconduct in government roles.
Setai’s Troubled Tenure at the Transport Department
Matshediso Millicent Setai joined the National Department of Transport on 1 March 2008 as Chief Director for Communications but her time there was short and stormy. Just six months later, on 19 September 2008, she was suspended after a forensic investigation by KPMG flagged major problems in her handling of contracts and funds. The probe led to 14 charges against her, covering a range of issues from breaking tender rules to making false statements.
Setai faced a pre-dismissal arbitration hearing chaired by Advocate Denga Mulima at the bargaining council. She pleaded not guilty, claiming she had done nothing wrong and challenging the validity of some departmental guidelines. However, the evidence painted a different picture. Witnesses, including former Director-General Mpumi Mpofu, testified about her lack of managerial skills and conflicts with staff. Mpofu noted that Setai treated some subordinates poorly and tried to replace them without proper cause.
The charges included unlawfully procuring services without competitive bidding, such as hiring Yardstick CC for R750,000 and C Squared Consumer Connectedness for R3.8 million under false pretences. Other accusations involved misleading colleagues and external parties to secure deals, like representing that certain companies would be subcontracted when no such plans existed. Setai was also charged with gross negligence in budgeting and authorising events without approval, leading to unauthorised spending of over R4 million on items like venue hires and music festivals.
After reviewing the evidence, Advocate Mulima found Setai guilty on 13 of the 14 charges, noting her actions showed a blatant disregard for rules despite her senior position. “I find her guilty of all charges levelled against her, except for charge 14,” the commissioner ruled. No mitigating factors were presented on her behalf, leading to her dismissal from public service as the appropriate sanction.
The Controversial R4.3 Million Settlement
Despite her dismissal on 8 June 2010, Setai approached the Minister of Transport on 22 October 2012 and secured a settlement of R4.3 million. This included R3.5 million in compensation and R800,000 for legal costs. The payment was made even though Setai was no longer an employee, raising red flags about its legality.
Former Director-General James Mlawu, who took office after the settlement, has now filed court papers to review and set aside the deal. He argues that the department had no legal basis to pay her since her dismissal ruling was never overturned. “The amount was paid to Setai after she has been dismissed from the employment of the NDOT, which ruling remains valid today,” Mlawu stated in his affidavit. He seeks to recover the full amount, claiming it was an unlawful use of public funds.
The case questions how such a large sum was approved without proper checks, especially given the forensic findings against Setai. It also spotlights potential flaws in how disputes with former employees are resolved, where settlements might bypass accountability.
Setai’s Current Role and Unanswered Questions
Setai now serves as spokesperson for Free State Premier Maqueen Letsoha-Mathae, a position that has drawn attention amid this legal challenge. Questions have been raised about due diligence in her appointment, including whether her past at the Transport Department was fully reviewed. Acting Director-General of the Free State Provincial Government, Dr Solomon Phera, has not responded to inquiries on this matter, leaving gaps in understanding the hiring process.
This development comes as Premier Letsoha-Mathae faces her own scrutiny, with the ANC’s Integrity Committee reviewing allegations against her. The connection between Setai’s history and her current role adds layers to discussions on ethical appointments in public service.
