The eThekwini Municipality reported irregular expenditure exceeding R4.4 billion for the 2024/25 financial year, primarily attributed to contentious water tanker contracts and significant supply chain management failures. This alarming figure was disclosed during a briefing to Parliament’s Standing Committee on Public Accounts (Scopa), where municipal leaders faced critical questioning regarding governance and financial irregularities. The municipality’s irregular expenses surged from R1.6 billion in the previous financial year to R4.48 billion, with a substantial portion linked to high costs of the water tanker program, which ballooned from R102.6 million in 2020/21 to R814.8 million in 2024/25. Investigations are underway into allegations of overpayments and procurement violations, particularly concerning a local plumbers’ program that failed to adhere to the Municipal Finance Management Act. City officials acknowledged the need for improved contract management and have initiated steps to reduce reliance on private contractors by acquiring their own fleet of water tankers.
Why It Matters
The significant irregular expenditure in eThekwini Municipality highlights ongoing issues within South Africa’s local governance and financial oversight. A reported R3.2 billion from previous financial records is currently under investigation, pointing to systemic issues in managing public funds. The municipality’s reliance on external service providers for essential services, such as water supply, raises concerns about accountability and efficiency in public service delivery. Furthermore, the Auditor-General’s involvement underscores the need for stringent oversight to prevent mismanagement and ensure that public resources are utilized effectively for community benefit.
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