KZN Department of Public Works and Infrastructure MEC Martin Meyer, Department of Public Works and Infrastructure Minister Dean Macpherson, and deputy director general Carmen-Joy Abrahams during a media briefing in Durban, where they revealed the Auditor-General’s report on serious issues in the eThekwini Municipality’s EPWP administration.
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Expanded Public Works Programme (EPWP) funding for the eThekwini Metropolitan Municipality has been suspended for the upcoming financial year after Department of Public Works and Infrastructure (DPWI) Minister Dean Macpherson ordered the withholding of funds. The decision follows a damning Auditor-General of South Africa (AG) report that uncovered material irregularities, including payments to ghost, deceased, and ineligible beneficiaries, which the municipality has failed to address since 2021/22.
This was revealed when Macpherson briefed the media on the status of EPWP in the eThekwini Municipality. Joining him were KZN DPWI MEC Martin Meyer and EPWP deputy director general Carmen-Joy Abrahams.
Macpherson received correspondence on April 8, 2026, from the AG identifying a material irregularity in eThekwini’s 2021/22 EPWP administration. The irregularity involves payments for services not rendered, violating section 65(2)(a) of the Municipal Finance Management Act. The municipality lacked verifiable records, like attendance registers, to prove work was done. The AG found the municipality’s database included ghost, deceased, or government-employed beneficiaries, and those with invalid IDs. Though the AG identified this during the 2021/22 audit, notified the municipality, and made recommendations for corrective action, the municipality failed to adequately implement the recommendations or address the irregularity within the stipulated period.
“Had the municipality implemented the remedial actions required by the Auditor-General when these findings were first raised, and had there been a properly functioning EPWP office with the necessary controls and oversight in place, we would not be standing here today,” Macpherson said.
He noted that communication between the department and municipality on EPWP issues has significantly deteriorated over the last three years. This ongoing challenge in establishing consistent, effective communication hinders proactive issue resolution and proper oversight.
“I have directed to withhold EPWP fund transfers to eThekwini Metropolitan Municipality in the new 2026/27 financial year until the necessary corrective action has been taken by the municipality and the department is satisfied that public funds will be protected - and that the Council implements urgent action to protect the programme and hold those officials responsible for non-compliance,” Macpherson said.
He said grant funding will stop if action has not occurred. Within 30 days, eThekwini must ensure that a council resolution is passed to deal comprehensively with the matter.
He also called for the resolution to endorse a full investigation into the allegations and AG’s findings; support a detailed remedial action plan with clear timeframes, responsibilities, and reporting lines to address the systemic failures; and back the institution of disciplinary, and where necessary, criminal action against responsible officials or individuals.
“The municipality must quantify the loss,” Macpherson said. “It must take all reasonable steps to recover funds improperly paid, in line with applicable financial misconduct and recovery processes. It must institute disciplinary action where wrongdoing is identified. And where criminal conduct is suspected, cases must be opened with law enforcement authorities.”
Meyer said they have continued to meet eThekwini halfway to ensure the EPWP offering remains relevant.
“As per official minutes, a brief timeline of our interventions with eThekwini include discussions held in June 2024 on performance and other issues with the MM (municipal manager) that affect implementation of EPWP at eThekwini Municipality and possible solutions; an intervention in June 2025 to identify and understanding blockages to implementation and developing innovative methodologies for resolving them; the uploading of participants' information into the EPWP reporting system between February and March 2026 and meeting with Zibambele programme coordinator to fast-track reporting in March 2026. These interventions remain ongoing,” Meyer said.
He said that in recent years, there has been a consistent decline in the municipality’s performance regarding EPWP.
Abrahams said this was avoidable.
“We continue to work with the municipality because this matter can be corrected. It requires commitment from the municipality, and it requires focus, and it also requires, as the minister has mentioned, the support of council,” Abrahams said.
“We know eThekwini led in phase one of the EPWP. They led in phase two of EPWP. However, the decline has come through in terms of phase three, and we’ve seen it in phase four, and now we are at an ultimate low in phase five.”
Abrahams said EPWP is no one’s piggy bank; it is for the poor.