An explosive legal showdown is looming between suspended SASSA KwaZulu-Natal boss Thamo Mzobe and her employer over a multimillion-rand contract dating back to her time as CEO of the National Development Agency (NDA).
The allegations cited relate to the appointment of Regenesys Business School as an implementing partner for the Unemployment Insurance Fund (UIF) Labour Activation Programme, a R142 million service level agreement allegedly signed without delegated authority, and a R23.2 million payment in November 2019.
But a second document, a lawyer’s letter dated 30 October 2026 from Saney Mbatha & Associates, acting for Mzobe, to the NDA’s acting CEO, Ms S Khumalo, disputes the basis of the action.
According to the letter, the allegations stem from a forensic report commissioned by the NDA and referred to SASSA via the Ministry of Social Development. Mzobe, who served as NDA CEO until 31 October 2021, denies any misconduct. She contends that she was never afforded a formal interview or a right of reply by the NDA or its investigators, was never given the report, and was not told of the NDA’s decision to refer the matter to her current employer.
Her attorneys have now demanded, by 12 November 2026, 14 categories of records. They include the forensic reports (among them one by Abacus Financial Crime Advisory); board resolutions authorising the investigation and the referral to SASSA, the Public Service Commission and the SAPS; all correspondence between the NDA and the ministry and between the NDA and SASSA; the 2019 and 2020 delegations of authority; executive committee minutes for August and September 2019; a letter from Mr B Magongo to the CEO in August 2019; correspondence with National Treasury in September 2020; and the Auditor-General’s management reports for 2018/19 to 2020/21.
The letter also cites a July 2020 memorandum referring the 2019/20 irregular expenditure to the NDA’s legal and human resources units, raising questions about whether the matter was dealt with internally before the later forensic probe.
SASSA’s notice relies on the Constitutional Court ruling in Long v South African Breweries (2019) to justify suspension without prior representations.
Mzobe’s suspension comes at a critical time for SASSA in KwaZulu-Natal, which handles grants for millions of beneficiaries.
The NDA and the Department of Social Development (DSD) have been contacted for comment. Mzobe has also been offered a right of reply, who referred all questions to her attorneys.
SASSA responds
In a response dated 3 November 2026, SASSA said the decision to place Mzobe on precautionary suspension was taken by its accounting authority, CEO Themba Matlou. The action was taken in line with section 16B(4) and (5) of the Public Service Act, 1994, as amended, read with Chapter 7 of the Senior Management Service (SMS) Handbook.
SASSA said the NDA and the DSD could not initiate disciplinary proceedings against Mzobe because she is no longer their employee, and they therefore asked SASSA, as her current employer, to implement the process. It said it is obliged under section 16B(5) to carry out a disciplinary process.
SASSA said its CEO, as accounting authority and line manager, has the authority to suspend executive managers. It added that the DSD has an oversight role over the administrative processes of both the NDA and SASSA.
SASSA confirmed that the matter relates to Mzobe’s tenure at the NDA in 2019, not to her performance as SASSA’s KwaZulu-Natal regional executive manager. It also confirmed that it has received the forensic report from the NDA via the DSD.
Asked whether the report has been given to Mzobe, SASSA said it will work with her lawyers, through the office of the State Attorney, to ensure that the relevant documents are forwarded to her. It said it has appointed an investigator and that the investigation would start on 5 November 2026.
“During that process, Ms Mzobe will be furnished with the report and afforded sufficient time to respond to the allegations,” the organisation said in response to questions.
It added: “Placing an employee on precautionary suspension does not mean that employee is guilty. Ms Mzobe has the right in terms of Section 35(3)(b) of the Constitution to be presumed innocent until proven otherwise.”
SASSA also confirmed to IOL that Simlindile Jabavu, the current general manager for finance, has been appointed acting regional executive manager for KwaZulu-Natal with effect from 28 October 2026.
