R2Billion Irregular ExpenditureThekwini, Kwa Zulu Natal
CHANON LECODEY MERRICKS ONLINE_EDITOR
The DA in eThekwini is calling for the immediate implementation of Section 32 of the Municipal Finance Management Act (MFMA) following the City’s latest internal audit report, which reveals a staggering R1.264 billion in unauthorized, irregular, fruitless and wasteful expenditure (UIFW) from the previous financial year, with a further R826 million already incurred in the current cycle.
The Act mandates that municipalities recover UIFW expenditure from the responsible person. It enforces personal liability for officials who intentionally or negligently causes such spending, requiring investigations, potential Council write-offs, and reporting criminal activity to SAPS.
The report is riddled with excuses such as “no update received” and “in progress”, some dating back to 2024. When auditors flag security risks and financial red flags, department heads routinely fail to act, with more than 70% of critical audit findings in the Finance and ICT departments left unresolved for over 180 days.
A 45% resolution rate on audit findings is a failing grade, yet in eThekwini it has become the norm. Heads of department continue to be promoted while ignoring audit queries for years without consequence.
While residents endure crumbling infrastructure, inaccurate billing and ongoing service delivery failures, funds meant for basic services are mismanaged with no accountability.
The deliberate disregard for the principles of good governance, as set out in the MFMA, must carry consequences.
Section 32 of the MFMA states that where officials fail to answer an audit query for six months, they must be held personally liable for financial losses incurred.
The DA will not allow the City Manager and executive leadership to hide behind administrative jargon.
We will continue to demand accountability and consequences for this R2 billion loss.
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