Government has tightened the screws on the eThekwini Municipality after serious irregularities were uncovered in the implementation of the Expanded Public Works Programme (EPWP).
Speaking at a media briefing in Umhlanga on Tuesday afternoon, Minister of Public Works and Infrastructure, Dean Macpherson, gave the City 30 days to act, ordering a full investigation and corrective measures, failing which EPWP funding will be withheld for the 2026/27 financial year.
The move follows damning findings by the Auditor-General of South Africa, which point to significant lapses in oversight and financial controls within the programme.
Macpherson was joined by KwaZulu-Natal MEC for Public Works and Infrastructure, Martin Meyer, and Deputy Director-General Carmen-Joy Abrahams, presenting a united front aimed at enforcing accountability.
Details emerging from the briefing paint a troubling picture. It is alleged that EPWP funds, distributed through government frameworks, were misused, with some reportedly channelled to illegitimate beneficiaries, including individuals using false identities. Officials further indicated that systemic weaknesses may have enabled the siphoning of funds.
Abrahams said the findings pointed to serious governance failures, adding that funds intended for vulnerable communities had allegedly been redirected through improper channels.
“Transparency must be prioritised, and the systems used to disburse funding need urgent strengthening to prevent further abuse,” she said.
Meyer echoed these sentiments, warning that the province would act decisively where wrongdoing is uncovered.
“We cannot allow programmes meant to uplift communities to be compromised. There must be consequence management, and where necessary, funds must be recovered and cases opened,” he said.
Macpherson said national intervention would not have been necessary had the municipality acted timeously.
“The department has a duty to safeguard public funds,” he said, citing ongoing challenges including poor communication, weak reporting systems and inconsistent oversight.
Officials noted that while some progress had been made during the early phases of the programme, performance deteriorated in later stages due to poor data quality and a lack of coordination.
A directive has since been issued that EPWP funds to eThekwini will remain withheld until the municipality adopts a full council resolution outlining corrective measures and demonstrates improved financial management.
The Auditor-General has escalated the matter, citing the city’s failure to take adequate corrective action. Government has warned that further steps could include withholding additional transfers, as well as disciplinary and possible criminal action against those responsible.
Accounting officers will now be required to submit and sign off on quarterly reports to strengthen transparency and oversight.
For residents, the developments raise fresh concerns about governance in the city. However, officials maintain that the move signals a firm shift towards accountability, ensuring that public funds are protected and that programmes aimed at uplifting communities deliver on their mandate.
Meanwhile, eThekwini Municipality released a statment on Wednesday morning saying it had noted the Minister’s remarks regarding the status of the EPWP grant.
The city confirmed that the material irregularity referenced relates to payments for services not rendered, in contravention of Section 65(2)(a) of the Municipal Finance Management Act.
Investigations conducted in 2025 by the City Integrity and Investigations Directorate (CIID) uncovered payments made to deceased participants, as well as to individuals concurrently employed in government departments and state-owned entities.
The probe, concluded in October 2025, recommended disciplinary action against implicated employees, the recovery of funds, the reporting of criminal cases, and the termination of ineligible beneficiaries, including so-called “double dippers”.
The municipality said disciplinary processes had been instituted in line with legislation, with some already finalised, while proceedings against five employees remain under way.
To address the root causes, the city said it has implemented stricter expenditure controls, including the centralisation of EPWP payments, enhanced recruitment and verification processes, and improved payroll and audit systems.
“Strict verification controls now apply to EPWP payment processing,” the municipality said.
Changes to banking details now require in-person identity verification, written requests, supervisory approval, and the maintenance of a formal register.
Monthly attendance records are verified and reconciled with payroll, while physical headcounts and cross-checks with the Department of Public Works database are conducted to identify irregularities.
The municipality added that internal reviews are conducted monthly to detect duplicate or irregular payments, with recovery processes initiated where discrepancies are found.
In line with Section 32(6) of the Municipal Finance Management Act, cases involving suspected criminal conduct have been reported to the South African Police Service, with three cases currently under investigation.
Despite the challenges, the city maintains it remains committed to restoring the integrity of the EPWP and ensuring that the programme continues to benefit communities in a transparent and accountable manner.
