DURBAN, KwaZulu-Natal — eThekwini finances have stabilized, Mayor Cyril Xaba confirmed, providing a comprehensive update on the KwaZulu-Natal metro’s financial governance, ongoing water infrastructure repairs, and the critical issue of service provider payments.
Addressing recent allegations raised by some service providers accusing the city of lacking funds, Mayor Xaba emphasized that the municipality’s sound financial management is evidenced by the consistent adoption of fully funded and credible budgets. As a result, the city’s equitable share allocations have not been withdrawn by the National Treasury, reflecting strong confidence in its financial governance. Importantly, Mayor Xaba noted that the city does not owe its water and electricity utilities, thereby guaranteeing customers a continuous supply of these essential services.
In addition to financial stability, the Mayor confirmed that the city has successfully met its targets in preparing to host the upcoming SADC Heads of State Summit next month.
Addressing the concerns surrounding contractor compensation, Musa Mbhele provided clarity on the payment of service providers, stating that the process has significantly improved since the launch of the municipality’s online payment system. Mbhele acknowledged that some service providers initially resisted the process, fearing it was exclusionary and meant to marginalize those at the “bottom rung of the pyramid.” However, Mbhele noted that feedback has shifted, with businesses now finding the system helpful for monitoring invoices. The municipality’s financial processes also recently received a commendation from the South African Revenue Service (SARS).
Despite these reported improvements, some contractors continue to face practical hurdles. A main contract manager representing service providers, stated that while contractors are not against modernization or the “industrial revolution,” many still struggle to understand the new system due to inadequate training.
The contract manager highlighted that the training provided by the municipality was conducted exclusively online via links. This approach poses a severe challenge for contractors who have gone months without payment and lack access to data or Wi-Fi. To bridge this gap, Lozi strongly recommended that the municipality host face-to-face workshops to properly equip service providers with the necessary knowledge.
Nevertheless, he acknowledged a positive shift, noting that contractors are now receiving payments, even if not all outstanding invoices have been settled in full yet.
To address these lingering concerns, a direct engagement is scheduled to take place between service providers and the eThekwini municipality. The meeting aims to iron out differences, improve communication, and ensure the online payment system works effectively for all stakeholders involved.
