Financial mismanagement: eThekwini Municipality reports R790 million in irregular expenditure

THE eThekwini Municipality Finance Committee has reported R388 million in irregular expenditure for January 2026, raising concerns about financial mismanagement and weak internal controls within the municipality.

Some of them were due to expired contracts with the irregular expenditure between July and December 2025 standing at R401 million. According to the Budget Statement Report for January 2026, the total figure amounts to R790 million for the 2025/2026 financial year.

This raised eyebrows at the committee meeting on Wednesday.

According to the committee report, the irregular expenditure incurred as reported by departments is as follows: 

•  R559,793: Parks, Recreation and Culture. Irregular expenditure incurred in the use of an expired contract for the  leasing of the Musgrave Library
• R223,469: Parks, Recreation and Culture. Irregular expenditure incurred in the use of an expired contract for the leasing of the Galleria Library in Amanzimtoti
• R3.3 million: Parks, Recreation, and Culture. Irregular expenditure incurred due to the use of an expired contract for the provision of shark safety gear for beaches within the eThekwini municipality area of jurisdiction. 
• R374.9 million: Supply chain management. Irregular expenditure incurred due to the procurement of goods and services without taking into consideration the preferential requirements of local content.
• R1.6 million: Energy Management Directorate. Use of an expired contract for the provision of prepaid vendor services. 
• R7.1 million: Programme Coordination Directorate. Irregular expenditure incurred due to exceeding contract authority for programme management support services for city capital projects. Expenditure incurred in excess of the approved contract authority with instructions issued prior to formal approval of a contract variation, contrary to eThekwini Supply Chain Management Policy and applicable delegations. 
• R800,000: Roads and Infrastructure management and engineering service directorate  Irregular expenditure incurred due to exceeding authority for the project reinstatement and stabilisation of Matwebula Road in Lamontville. Expenditure incurred in excess of the approved contract authority with instructions issued prior to formal approval of a contract variation, contrary to eThekwini Supply Chain Management Policy and applicable delegations. 

eThekwini Councillor Thabani Ndlovu, the DA's eThekwini Whip-Finance Committee, said he was concerned about the rapidly deteriorating financial position in the municipality.

“This staggering increase within a single month is not only reckless but also a clear indication that financial controls within the Municipality are either collapsing or being deliberately ignored,” Ndlovu said.  

He added that the Auditor-General of South Africa (AGSA) has flagged similar issues in previous financial years, repeatedly warning the municipality about weak internal controls, non-compliance with supply chain management processes, and the failure to enforce consequence management. 

“There appears to be little to no meaningful consequences for officials responsible for this ongoing pattern of financial misconduct. Without firm and visible accountability, this culture of impunity will persist,” he said. 

POST