The eThekwini Municipality has been given 30 days to address material irregularities identified by the Auditor-General, or risk losing grant funding for the upcoming financial year. In Picture: MEC Martin Meyer, Minister Dean Macpherson and Deputy Director General Carmen-Joy Abraham.
Image: Sipho Jack
The eThekwini Municipality has been given 30 days to take corrective action following material irregularities with financial transactions identified by the Auditor-General (AG) in its handling of the Expanded Public Works Programme (EPWP).
This comes after the AG found payments made for services not rendered, including payments to ghost, deceased, and ineligible beneficiaries.
The EPWP is a nationwide programme covering all spheres of government and state-owned enterprises that provides vital avenues for labour absorption and income transfers to poor households in the short- to medium-term.
If the municipality fails to act within the stipulated period, the Department of Public Works, one of the custodians of the EPWP, will withhold the grant for the 2026/2027 financial year.
While addressing the media on Tuesday at the Premier Hotel in Umhlanga, Public Works Minister Dean Macpherson said that the steps taken by the department were necessary to prevent the continued abuse of public funds and the exploitation of programme participants.
Macpherson also noted that issues often went undetected due to reliance on municipalities to provide data, which created a disincentive for transparency.
“Examples from other areas show that action is taken when problems are identified, and funding can be reinstated if no misuse is found. There’s a need to reform the EPWP into a programme that provides meaningful, long-term employment opportunities rather than low-paying, temporary work, in order to restore dignity to participants,” Macpherson said.
The minister said that it was difficult to measure financial losses in the EPWP due to a lack of accurate information from municipalities, particularly the eThekwini Municipality.
He cited issues such as poor communication and weak oversight systems, which have created gaps allowing for the misuse of funds.
Macpherson acknowledged that earlier warning systems should have been in place and highlighted planned reforms, especially digitising recruitment and payment processes to reduce corruption and human interference.
However, the responsibility to investigate wrongdoing and ensure accountability lies with municipal councils, not with the department providing the grant.
Echoing these sentiments, KZN Public Works MEC Martin Meyer said that his department had held numerous discussions with the eThekwini Municipality regarding EPWP matters.
A timeline of interventions documents meetings dating back to June 2024 aimed at addressing the prevailing issues affecting the implementation of the programme.
Meyer noted: “We have been proactive, engaging with the municipality to identify and resolve blockages in implementation. Our records indicate a concerning decline in eThekwini's performance regarding the EPWP, and we are committed to understanding the reasons behind this trend.”
Statistics over recent years reveal a pattern of missed targets and diminishing grant allocations, attributed chiefly to non-compliance, specifically the late submission of important reports.
Demands for a turnaround intervention have led KZN Public Works and Infrastructure to reassess various aspects of the EPWP.
“We are focused on identifying shortcomings that led to systemic failures, depoliticising the programme, and enhancing our relationship with municipalities to better protect legitimate beneficiaries going forward,” Meyer affirmed, expressing optimism about ongoing developmental improvements in the EPWP offerings.
DAILY NEWS