KwaZulu-Natal’s Provincial Treasury has raised concerns over deteriorating financial practices in municipalities, revealing alarming levels of wasteful expenditure and calling for urgent reforms to restore accountability.
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KwaZulu-Natal’s Provincial Treasury has raised alarm over deteriorating financial management practices in municipalities across the province, following the release of the National Treasury’s latest Municipal Finance Management Act (MFMA) compliance report.
The report, titled Strengthening Municipal Financial Management – MFMA Compliance 2024/25, revealed escalating levels of unauthorised, irregular, fruitless and wasteful expenditure nationally, now standing at a staggering R268.13 billion.
KZN, alongside the Eastern Cape, was singled out as one of the provinces facing heightened fiscal risks, with concerns mounting over unsustainable spending patterns and weak governance systems within municipalities.
Among the major concerns flagged was overtime expenditure exceeding R316 million, which Treasury warned was placing additional pressure on already strained municipal budgets.
KwaZulu-Natal Provincial Treasury said the findings reinforced the urgent need for municipalities to tighten compliance with the MFMA, strengthen internal financial controls, improve supply chain management processes, and enforce consequence management against officials implicated in financial misconduct.
KwaZulu-Natal MEC for Finance, Francois Rodgers, said the report highlighted the seriousness of the financial governance crisis facing municipalities.
“These findings are a stark reminder that sound financial management and accountability are non-negotiable. Municipalities must strengthen controls, ensure credible reporting, and decisively address financial misconduct,” Rodgers said.
He welcomed the decision by the Provincial Executive Committee of the Government of Provincial Unity to summon the top 10 municipalities with the highest levels of irregular, fruitless and wasteful expenditure to account for their financial records.
“We welcome the decision by the Provincial Executive Committee of the Government of Provincial Unity to request presentations from the top 10 municipalities with the highest levels of irregular, fruitless and wasteful expenditure.
“This intervention will assist in shedding light on the underlying challenges and inform the necessary corrective measures required to remedy the situation,” he added.
Provincial Treasury said it remained committed to supporting municipalities to improve compliance and strengthen institutional capacity in an effort to restore accountability and public trust.
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