KZN LEGISLATURE COGTA PORTFOLIO COMMITTEE UNDERTAKES SUCCESSFUL OVERSIGHT VISITS TO STRUGGLING MUNICIPALITIES

Media statement
15 July 2025

KZN LEGISLATURE COGTA PORTFOLIO COMMITTEE UNDERTAKES SUCCESSFUL OVERSIGHT VISITS TO STRUGGLING MUNICIPALITIES

The KwaZulu-Natal Legislature’s COGTA Portfolio Committee today held two Section 132 hearings at Umzinyathi District and eNdumeni Municipalities to address concerns about financial mismanagement, project delays, and lack of accountability raised by the Auditor General (AG).
The legislature utilizes Section 132 hearings as a mechanism to hold municipalities accountable for their adverse audit outcomes and financial management practices. The hearings are held under Section 132 of the Municipal Finance Management Act and are a crucial part of the legislature’s oversight function.

COGTA Portfolio Committee Chairperson, Hon Marlaine Nair said the committee had resolved to hold meetings with worst performing municipalities which have received adverse audits, disclaimer audits and qualified audit reports from the Auditor General in the last financial year.

“Today we held two successful meetings as part of our responsibility under Section 132 of the MFMA, which requires the Legislature to conduct formal oversight over the municipality’s annual report and the findings of the Auditor-General. This is an important part of our work in ensuring financial accountability, good governance, and service deliver,” added Nair.
She described the engagement with uMzinyathi District Municipality as crucial because the municipality has been under a Section 139(1)(b) intervention since 2016, which saw the provincial government taking over certain functions of the municipality due to serious failures in governance and administration.
Despite this intervention, the municipality has continued to perform poorly. The Auditor-General has issued an adverse audit opinion for the third consecutive year, meaning the financial statements are not reliable and there is serious non-compliance with laws and regulations.
In the 2023/24 financial year, the AG identified R1.4 billion in irregular expenditure, R323 million in unauthorised spending, and R42 million in fruitless and wasteful expenditure.
The municipality has tabled unfunded budgets for the past three years, is at risk of running out of cash, and is struggling to deliver basic services especially in the water sector where major infrastructure projects remain incomplete.
Endumeni Municipality also faced a myriad of administrative challenges which saw it receiving a disclaimer from the AG.
Nair described today’s meetings as a resounding success, adding that Members of the legislature were able to fully understand what drove long-standing problems and what was being done to resolve them in both municipalities.
The legislators were also able to recommend practical solutions and clear follow-up steps for this committee and for provincial government.

ISSUED BY THE CHAIRPERSON OF THE COGTA PORTFOLIO COMMITTEE IN THE KWAZULU-NATAL LEGISLATURE, HON MARLAINE NAIR

For media interviews: Hon Marlaine Nair 0726928963
For enquiries            : Mr Bongani Tembe