SAMWU DECLARES WAR ON INSTITUTIONALIZED LOOTING AND ADMINISTRATIVE ANARCHY AT UTHUKELA DISTRICT MUNICIPALITY

7 March 2026

SAMWU DECLARES WAR ON INSTITUTIONALIZED LOOTING AND ADMINISTRATIVE ANARCHY AT UTHUKELA DISTRICT MUNICIPALITY

The South African Municipal Workers’ Union (SAMWU) expresses deep concern regarding recent developments at the uThukela District Municipality which, in our view, point to serious failures in governance, financial management and administrative accountability. These developments raise significant questions about the conduct of the municipal administration under the leadership of the Accounting Officer, Mr Langelihle Jili, and the role of the Council in exercising its oversight responsibilities.

SAMWU has noted with concern that on 3 October 2025 the Municipal Manager entered into a High Court consent order without the approval of Council. This decision has had serious financial implications for the municipality. Despite evidence suggesting that the municipality had sufficient liquidity prior to 15 December 2025, the municipality defaulted on the first instalment in terms of the consent order. The consequence of this default was the triggering of Clause 7 of the agreement, which imposed an interest penalty of 11 percent backdated to October 2023.

This decision has placed a substantial financial burden on the municipality. Based on available information, the total liability stands at approximately R137 million, of which more than R90 million had already been paid as of February 2026. SAMWU believes that this situation warrants urgent scrutiny, particularly given the financial strain placed on the municipality while workers continue to be informed that there are insufficient funds to meet basic obligations.

The Union has also uncovered information suggesting that the Municipal Manager may have procured short-term financial assistance through the uThukela Economic Development Agency (UEDA) without the necessary Council approval and outside the framework provided by the Municipal Finance Management Act (MFMA). While a loan amount of R16 million was reportedly secured for the purpose of paying employee salaries, financial records indicate that an amount of R20 million was deposited. SAMWU calls for a full and transparent explanation regarding this discrepancy of R4 million.

Such actions, if confirmed, would raise serious concerns regarding compliance with the MFMA and the proper management of municipal finances. SAMWU had previously raised concerns about governance practices within the administration, including issues relating to supply chain management processes and irregular expenditure. Unfortunately, these concerns were not adequately addressed.

Instead, the Council meeting held on 27 February 2026 appears to have adopted reports that, in our view, fail to adequately address the seriousness of the issues at hand. This raises broader concerns regarding the effectiveness of Council oversight and its responsibility to safeguard public resources.
The Union has also been informed that personal employee information may have been shared with the uThukela Economic Development Agency without proper authorisation. If confirmed, this would constitute a potential breach of the Protection of Personal Information Act (POPIA) and must be urgently investigated. Furthermore, SAMWU has reason to believe that financial arrangements may have been undertaken through third-party structures that effectively operate outside the approved municipal budget processes. These matters require immediate scrutiny by the relevant authorities.

In light of the seriousness of these issues, SAMWU has instructed its legal team to initiate the following processes: a Section 32 application in terms of the MFMA to determine personal liability for financial losses incurred by the municipality; an urgent High Court interdict to prevent any further unauthorised financial transactions or borrowing arrangements; a complaint to the Information Regulator regarding the possible unlawful disclosure of employee information under POPIA; and the escalation of the matter to the Special Investigating Unit (SIU) to ensure an independent investigation into the issues raised.

SAMWU therefore calls for the immediate suspension of the Municipal Manager, Mr Langelihle Jili, and the General Manager: Corporate Services pending investigation. The Union further demands a full forensic investigation into all financial transactions involving the uThukela Economic Development Agency, including the reported discrepancy of R4 million, and the immediate settlement of all outstanding third-party deductions including medical aid and pension fund contributions owed on behalf of employees.

SAMWU remains committed to defending the integrity of public institutions and protecting the rights and livelihoods of municipal workers. The people of uThukela deserve a municipality that is governed with transparency, accountability and respect for the rule of law. The Union will continue to pursue all lawful avenues to ensure that these matters are fully investigated and that those responsible are held accountable.

Issued by: SAMWU KZN
For inquiries
Mbongeleni Miya
SAMWU Prof Sibankulu Regional Secretary,
071 683 3644