The DA in the eThekwini Municipality was concerned about irregular expenditure, uncollected debt, and non-revenue water, highlighted in a Finance Committee report.
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The eThekwini Municipality’s culmination of unauthorised, irregular, fruitless, and wasteful (UIFW) expenditure incurred for the quarter ended March 31, 2025, amounted to R1.4 billion.
According to the municipality’s Finance Committee debt collection report for the month ended April 2026, the total debt was R44 billion for February, R44.5 billion for March, and R45.4 billion for April.
The committee reported on Wednesday that water accounts for 42% of the total debt, while property rates (23%) and electricity (14%) make up the rest. In total, R40.3 billion relates to rates and services debt, while R5 billion is for all other debtors, including sundries and interest charges.
Household debt makes up the bulk of the debt at R34 billion, while government departments and parastatals account for R1.8 billion. The Revenue Management Directorate outlined its debt collection and recovery plans.
The committee stated that as part of the debt reduction strategy, a disconnection committee meets weekly.
In April 2026, the Disconnections Committee recorded 3,126 water disconnections, valued at R305 million, and 10,940 electricity disconnections.
Councillor Thabani Ndlovu, the DA whip in the Finance Committee, said the municipality’s finances continue to deteriorate, as highlighted in the meeting held on Wednesday.
Ndlovu was concerned about irregular expenditure, uncollected debt, and non-revenue water, which was recorded at 54%.
“The Democratic Alliance in eThekwini has warned of the total collapse of the municipality if the worsening financial crisis is not urgently addressed. Uncollected debt has increased by almost R1 billion. Residents continue to face collapsing service delivery, rising tariffs, and growing economic pressure. We have consistently warned the municipality that the continued failure to address water losses, improve revenue collection, and enforce consequence management is pushing the city closer to financial disaster,” Ndlovu said.
He said that if urgent corrective measures are not implemented immediately, eThekwini risks total collapse, with devastating consequences for service delivery, infrastructure, investment, and public confidence in the municipality.
“We will continue to demand accountability, financial discipline, and urgent reforms to protect residents and restore stability to the city’s finances,” he said.
On Wednesday, the municipality provided an update on financial sustainability to the Standing Committee on Public Accounts (SCOPA) in Parliament, stating that its financial position remains stable and resilient.
The municipality added that they have consistently received unqualified audit opinions over the past five years, with only a few matters raised during this period. The municipality said this stability is further reflected in the strong credit ratings of AA- in the long term and A1+ in the short term.
In addition, the municipality stated that the budget currently being implemented is fully funded, credible, and aligned with its developmental priorities.
The National Treasury has also affirmed the credibility of the proposed 2026/27 budget. The municipality further reported that its collection rate currently stands at 94%, which is in line with National Treasury norms.
The municipality also highlighted that it remains fully up to date with payments to its bulk suppliers of water and electricity, namely Eskom and uMngeni-uThukela Water.