SAMWU Statement on the Auditor General’s Report on KZN Municipalities
11 March 2025
SAMWU Statement on the Auditor General’s Report on KZN Municipalities
The South African Municipal Workers’ Union (SAMWU) in the KwaZulu Natal province is deeply alarmed by the Auditor General’s (AG) report on the state of municipalities in KwaZulu-Natal for the 2023/24 financial year. This report exposes a shocking level of financial mismanagement, poor governance, and a blatant disregard for accountability across most municipalities in the province.
The AG’s findings validate SAMWU’s long-standing warnings about the systemic collapse of governance and financial controls in many municipalities. The report reveals irregular expenditure of R1.6 billion in eThekwini alone, along with R6.7 million in fruitless and wasteful expenditure. These figures represent a profound betrayal of public trust and a direct threat to service delivery and the livelihoods of workers and communities.
Of particular concern is the AG’s revelation that 60 cases of material irregularities, amounting to R1.15 billion in losses, were only addressed after the AG intervened. This indicates a pervasive culture of impunity and a lack of consequence management. Municipalities like Amajuba and Harry Gwala overspent their budgets but achieved minimal results, while others, such as Msunduzi, continue to regress with R900 million in irregular, wasteful, and fruitless expenditure.
The situation in Msunduzi is particularly alarming. For the third consecutive year, Msunduzi has received a qualified audit opinion, with the AG flagging R900 million in irregular, wasteful, and fruitless expenditure. This includes R5.4 million wasted on the Woodlands Housing Project due to non-compliance with environmental laws and R140 million lost in revenue management and debt collection.
The AG’s report also highlights poor meter reading practices, slow responses to action plans, and a lack of consequence management. These failures are not just administrative, they have real consequences for workers and residents. The continued mismanagement in Msunduzi is a slap in the face to the hardworking municipal employees who strive to deliver services under increasingly difficult conditions.
SAMWU is deeply concerned about the AG’s warning that the non-achievement of service delivery targets poses significant risks to communities, including insufficient access to water, sanitation, and electricity. This not only undermines the quality of life for residents but also fuels civil unrest and protests, further straining the already overburdened municipal workforce.
While we acknowledge the seven municipalities that achieved clean audits, the overall picture is one of regression and failure. The AG’s recommendations, including the strengthening of Municipal Public Accounts Committees (MPACs) and disciplinary boards, must be implemented without delay. SAMWU calls on COGTA and provincial leadership to take urgent action to address these issues and ensure that those responsible for mismanagement are held accountable.
We therefore call on all those responsible for the fruitless, wasteful, and irregular expenditure to be held personally liable for their actions. The Auditor General must use her powers in terms of the recently amended Public Audit Act to ensure that accountability is enforced and that those who have mismanaged public funds face the consequences.
Issued by SAMWU KwaZulu Natal
Nokubonga Dinga,
Provincial Secretary
065 871 8334
or
Xolani Shinga,
Deputy Provincial Secretary
081 852 1821