The KwaZulu-Natal Provincial Treasury has withdrawn its financial support services to the embattled Umkhanyakude District Municipality, citing a lack of cooperation from municipal officials.
The municipality, which has been under administration through Section 139 of the Constitution, faces severe governance challenges, including allegations of corruption and maladministration. A forensic investigation by the provincial Department of Cooperative Governance and Traditional Affairs (CoGTA) is currently underway.
No Buy-In from Officials
Finance MEC Francois Rodgers confirmed the decision, stating that despite years of intervention, municipal officials have repeatedly failed to engage with Treasury officials sent to assist.
“Our team arrives, but officials are unavailable—always rushing off to meetings. After six years of trying to facilitate change, we can’t justify wasting resources where there’s no willingness to comply,” Rodgers said.
He emphasized that the withdrawal does not affect the municipality’s budget but rather removes the Treasury’s technical support, including capacity-building and financial management assistance.
Auditor General Flags R4 Billion in Irregular Expenditure
The decision follows a damning Auditor General (AG) report revealing over R4 billion in irregular expenditure for the 2022/2023 financial year. Rodgers noted that despite repeated warnings, the municipality has failed to address financial mismanagement.
“Richmond Municipality was in a similar crisis, but with cooperation, they achieved a clean audit. Without buy-in, Umkhanyakude’s situation won’t improve,” he said.
Political Will Lacking
Rodgers dismissed claims that the municipality is financially stable, arguing that funded budgets mean little if revenue collection is unsustainable. He also denied receiving any direct communication from the mayor, despite media reports suggesting otherwise.
Meanwhile, the provincial CoGTA MEC has attempted to intervene by appointing an administrator, but municipal leadership has reportedly resisted, even locking out officials.
Provincial Unity Government Stands Firm
Rodgers stressed that the decision to withdraw support was backed by the multi-party provincial cabinet, including the ANC, DA, IFP, and NFP.
“We put principle before politics. If officials refuse to comply, we must act in the public’s interest,” he said.
What’s Next for Umkhanyakude?
With Treasury stepping back, the municipality now faces heightened scrutiny. Rodgers suggested that legislative reforms may be needed to strengthen oversight of failing municipalities.
For now, residents are left questioning whether local leaders will finally cooperate with provincial interventions—or risk further collapse.
