KZN municipalities overspend budgets but fail to achieve service delivery targets
Officials from the Office of the Auditor-General SA met with members of the Scopa committee at the KwaZulu-Natal legislature this week to give a detailed briefing on the state of municipalities.
Image: Independent Newspapers Archives
The Standing Committee on Public Accounts (Scopa) in KwaZulu-Natal is demanding answers on how municipalities are spending their budgets following concerns that the spending does not align with service delivery.
The spending habits of some municipalities were flagged recently by the Office of the Auditor-General of SA (AGSA) during its meeting with Scopa in the KZN legislature. The AGSA revealed that some municipalities are spending their way into ruin, indicating that some of them often allocate a portion of next year's budget in the current financial year.
Members of the committee stated they are waiting to receive a proper breakdown from the AGSA on how these municipalities are spending their budgets before addressing the matter with the municipalities.
Nomalungelo Mkhize of the AGSA office in KZN said, 'It is important that there is useful, reliable reporting and performance planning for municipalities because it shows that one knows where they are insofar as service delivery is concerned and what needs to be done going forward.'
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
She noted that the AGSA found that in most municipalities, not all performance targets were met, even though the majority of the budget was spent. She stated that they found that 26% of municipalities had reported achievements that were not reliable, with indicators and targets that were not well-defined or measurable. Some excluded indicators that measure performance in their core mandated functions. The AGSA office found that it was only the Zululand District Municipality that had spent its budget and achieved 100% of its targets.
She said the reasons for the non-achievement of targets in municipalities include delays in the supply chain management process, poor performance from contractors, inadequate project management, weak financial controls, and insufficient resource planning.
Mkhize added that the budget is spent without correlation to the targets achieved. In one municipality, 100% of the budget was spent, but only 62% of the targets were achieved. In another municipality, they overspent on their budget and only achieved 20% of their core service delivery targets. 'Despite spending the majority of the budget, the key service delivery targets were not achieved,' said the AGSA official.
She said in one of the big municipalities in the province, an improvement has been noted in the percentage of targets achieved, increasing from 74.58% to 83.93% in the current performance period. 'However, the non-correlation of targets achieved and budget spent remains a concern, as fiscal pressures require a more efficient approach to service delivery.'
The non-achievement of key service delivery targets poses significant risks relating to insufficient access to water, sanitation, electricity, and waste management services, leading to deteriorating living conditions. Residents and communities may lose trust in local government, leading to protests, service delivery strikes, and civil unrest. Additionally, there is a lack of consequences for officials who fail to achieve key service delivery targets, the report by the AGSA added regarding this matter.
Tim Brauteseth, the chairperson of the Scopa committee, said they are concerned about the situation and will soon be demanding answers from municipalities. He said despite substantial budgets, key service delivery targets are not being met. This is particularly evident in infrastructure projects, where delays, cost overruns, and substandard work are common. 'A closer study of this situation reveals that in one district municipality, they spent 113% of (their) budget and achieved only 20% of (their) targets. Another spent 100% and only achieved 32%, while another overspent its budget by 120% and underachieved at 54%.'
He said as part of KwaZulu-Natal's (KZN's) Government of Provincial Unity (GPU), the DA will insist that municipal leadership prioritise effective budget management and ensure that funds are allocated and utilised efficiently. He added, 'There must be a stronger focus on planning, monitoring, and executing infrastructure projects to avoid delays and cost overruns. Additionally, maintenance budgets must be adequately funded to ensure the sustainability of existing infrastructure.
'We call on all stakeholders, including municipal leadership, the Auditor-General, and oversight bodies, to take immediate and decisive action to address these issues. 'There must be a culture of accountability and transparency within our municipalities to ensure that public funds are used effectively to improve service delivery and the quality of life for all our province's people,' he concluded.
THE MERCURY
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
13 hours ago
- IOL News
R1. 4bn wasted: Sapo's epic failure
THE SA Post Office (Sapo) has been declared financially 'unsustainable' and riddled with systemic mismanagement. Image: Independent Newspapers Archives THE SA Post Office (Sapo) has been declared financially 'unsustainable' and riddled with systemic mismanagement after receiving its fourth consecutive failed audit opinion from the Auditor-General of South Africa (AGSA), sparking outrage from MPs who demanded answers on why the failing institution keeps consuming public money. AGSA's damning report, presented to Parliament's Standing Committee on Public Accounts (Scopa) on June 11, exposed: R152 million lost to fruitless and irregular spending in 2023/24, with R136 million dismissed without repercussions. A dismal 13% achievement rate on performance targets, despite a R381m bailout from the Unemployment Insurance Fund (UIF) for staff salaries. R86 million paid to business rescue practitioners (BRPs) and advisors since 2023, with little progress to show. No stable leadership, severe staff shortages, and repeated violations of the Public Finance Management Act (PFMA). AGSA officials delivered a stark verdict: Sapo is being propped up by taxpayer funds. 'Costs keep outstripping income. Debts are mounting, and the organisation isn't earning enough to survive,' said AGSA's Makhai Motshekga. ActionSA's Alan Beesley was more blunt: 'It's time to pull the plug. Sapo cannot be saved.' The BRPs, brought in July 2023, have already burned through R86m, including payments to consultants, tax experts, and lawyers. The EFF's Ntombovuyo Mente-Nkuna demanded answers: 'Who are these advisors? What have they actually fixed? We can't keep throwing money at a sinking ship.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ AGSA's Nathan Lawnet said the BRPs — from firms SNG and Legae — were 'qualified' but admitted survival depends on 'new income sources and partnerships,' which still don't exist. MPs pressed AGSA on Sapo's unaccounted-for assets, with Mente-Nkuna noting rural branch closures force grant recipients to travel far. 'How many buildings does Sapo still control? Why aren't they helping our communities?' she asked. AGSA confirmed Sapo owns properties and old equipment, but said almost nothing has been upgraded in years. Postbank's separation from Sapo — required by banking laws — has created confusion. Though Postbank is now audited independently, it still depends on Sapo's failing systems. ANC's Gijimani Skosana warned: 'Postbank once helped fund Sapo. Now, both are drowning.' Wasteful spending continues unchecked, with R200m squandered since 2021. Mente-Nkuna slammed the impunity: 'R136 million just written off? Who checked this? Who was held responsible?' AGSA admitted probes were lacking, blaming write-offs on debt settlements, not internal crackdowns.
IOL News
14 hours ago
- IOL News
uMkhonto WeSizwe Party announces new MPs, excludes Floyd Shivambu
New Members of Parliament sworn in by uMkhonto WeSizwe, but Floyd Shivambu left out Image: Tumi Pakkies The uMkhonto WeSizwe (MK) Party has officially announced the nomination and swearing of nine new Members of Parliament (MPs) to the National Assembly to fill vacant seats, but excluded former secretary general Floyd Shivambu. On Saturday, Colleen Makhubele, the MK Party's chief whip, announced that the new members will be sworn in on Wednesday in the Speaker's Boardroom in the Parliament of South Africa. The incoming MPs are Mr Lungisani Graduate Shangase, Mr Jeffrey Bhekumndeni Mtolo, Mr Zibuse Khayelihle Abednego Cele, Mr Siphetho Witness Mkhize, Ms Philisande Mkhize, Mr Gift Motaung, Ms Noma Buthelezi, Ms Ntandoyenkosi Nkosentsha Shezi, and Ms Khanyisile Litchfield According to the MK party, these individuals bring diverse experience and dedication, poised to bolster the party's efforts to serve South Africans and uphold the core values of democracy, equality, and justice. Makhubele said the party is committed to effective representation and pursuing policies that benefit all citizens. "These new members exemplify our commitment to building a better future for South Africa. We look forward to working with them as we continue to advocate for the rights and interests of our people," she said. Meanwhile, Shivambu, who was demoted as party secretary general and promised a seat as an MP, has taken a different path. On Thursday, Shivambu held a press briefing revealing plans to initiate a nationwide consultation with various church leaders and community stakeholders. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ He indicated that this process aims to determine whether to establish a new political party, independent of the MK party. This move follows recent reports by IOL of the MK Party's decision to exclude Shivambu from its parliamentary list, a move that Shivambu criticised publicly. In removing Shivambu from his position as the party's SG, the MK party cited Shivambu's unauthorised visit to Prophet Shepherd Bushiri in Malawi as a breach of party protocol. However, Shivambu dismissed the party's reasons, claiming he was demoted because he had questioned the embezzlement of R7 million from the party's funds. 'I was redeployed for daring to speak out against corruption within the party. Despite this, I remain committed to serving the people and will not leave the MK party.' 'I am exploring the possibility of forming a new political entity that reflects our shared values," Shivambu stated during the briefing. He further indicated that he would proceed with the potential formation of a new political platform, emphasising that his actions are motivated by a desire to promote transparency and accountability in South African politics.
IOL News
21 hours ago
- IOL News
National Dialogue 2. 0… the last throw of the dice?
A cartoon by award-winning, Nanda Soobben Image: Nanda Soobben IT IS A common cause that 31 years since the formal demise of apartheid, the promises, great expectations and dreams of democracy are rapidly turning into horrific nightmares for the poor and disadvantaged. At the same time (new and old) elites rule the roost. Socio-economic and spatial inequalities of the apartheid era widened, while the politically-connected continued to accumulate wealth and power at the expense of the poor. Crime and corruption escalate exponentially and are inextricably connected to political elites, global mafia operations of every genre magnetically gravitate to our country, and gender-based violence is a pandemic. South Africa has one of the highest unemployment rates in the world (33%), especially among young adults. The poor have inadequate access to essential services like water, electricity, health care and basic education. Many of these challenges were aggravated by state capture. As highlighted by the Zondo Commission, state capture in South Africa involved the systematic and deliberate subversion of state-owned enterprises (SOEs) for private gain. State capture eroded good governance practices within SOEs and government departments (including law enforcement and intelligence services), decreasing operational performance and effectiveness. This entailed influencing appointments, procurement procedures, governance, and institutional structures to favour specific individuals and organisations. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Key SOEs like Eskom, Transnet, and South African Airways were significantly impacted by state capture, with subsequent multiplier effects on all aspects of South African life, destroying the economy. All these problems and challenges were aggravated during the hegemonic rule and reign of one political party, the ANC. Not surprisingly, some of its senior members were implicated in the State Capture report. Still, no one has yet been convicted because of the hollowing out of capacity in the National Prosecuting Authority. When he was firmly ensconced on the throne, Jacob Zuma repeatedly said that the "ANC will rule until Jesus returns". However, there were some obvious indications that the ANC was haemorrhaging, for example, in the 2021 Local Government Elections, it received 45.59% of the vote. In the May 2024 General Elections, the ANC lost its parliamentary majority, winning 40.18% of the vote. Ironically, Zuma's newly-established uMkhonto weSizwe (MK) Party (while he still claimed to be a disciplined member of the ANC) eroded the support of the ANC, winning 14.58% of the vote. The notion of a National Dialogue entered the public domain against the background of the ANC's declining electoral support. Former president Thabo Mbeki initially proposed a national dialogue in May 2024, where he called for 'seismic reflections". This was endorsed by President Cyril Ramaphosa, who in his inauguration address after the May 2024 national elections, invited 'all parties, civil society, labour, business and other formations to a national dialogue on the critical challenges facing the nation'. President Ramaphosa said: 'By establishing the government of national unity, by preparing for a national dialogue, we have deliberately set ourselves along the path towards a 'co-operation nation.' We would like all of us as South Africans to behave like 'weaver birds'... despite all the challenges, despite our differences, despite all the headwinds.' There is a view that ruling elites have frequently utilised national dialogues to obtain or regain political legitimacy. According to the Geneva-based Inclusive Peace and Transition Initiative: 'National Dialogues are typically convened when the fundamental nature or survival of a government in power is questioned. Thus, they usually intend to redefine the relationship between the state, political actors, and society by negotiating a new social contract.' A national dialogue can be used for peacebuilding and reconciliation to increase confidence and trust amongst national actors, encourage inclusive engagement, and advance agreement on critical social, political, and economic challenges. The "National Dialogue Handbook" defines national dialogues as: 'nationally owned political processes aimed at generating consensus among a broad range of national stakeholders in times of deep political crisis, in post-war situations or during far-reaching political transitions.' The goal is for national leaders (political, business, religious, civil society, sports, etc.) across the ideological spectrum to debate, discuss and encourage inclusive engagement and advance agreement on significant social, political, and economic challenges. It is worth noting that the first National Dialogue was the Convention for a Democratic South Africa (CODESA), which took place in Johannesburg in December 1991. It was a critical step in the process of transitioning South Africa from apartheid to a democratic state. Nineteen political organisations participated, including the ruling National Party and the dominant African National Congress (ANC), comprising 228 delegates. Key aspects of CODESA included signing a "Declaration of Intent" committing to negotiations and creating a new, democratic constitution. The parties agreed on the principles of a unified, democratic, and non-racial South Africa, with a supreme constitution and an independent judiciary. CODESA established the foundation for negotiations for a democratic South Africa. While there were many disagreements, CODESA was a crucial step in the process of dismantling apartheid and building a new nation. The procedure was sufficiently adaptable to permit the creation of new forums and committees and modifications to existing ones based on political South Africa's transition from apartheid proceeded (with all its twists and turns), a Multi-Party Negotiating Process (MPNP) was established in March 1993, culminating in the adoption of an interim Constitution and preparations for the country's first non-racial elections. Parties with opposing views had to make substantial concessions during this process. Given the protracted conflict and violent past, the comparatively quiet and orderly democratic transition was praised globally as a miracle. Essential outcomes from the first National Dialogue were the RDP and the Constitution. The National Development Plan (NDP), which presented a long-term vision and goals for South Africa to achieve by 2030, was released in 2012. All three documents can influence outcomes in the National Dialogue 2.0. There is no need to reinvent the wheel. Almost a year since it was initially proposed, on June 10, 2025, Ramaphosa released the names of the Eminent Persons Group to 'guide and champion the National Dialogue.' All the problems in South Africa cannot be solved by national dialogues alone. For a national dialogue to be successful, several challenges must be addressed, including political actors' opposition and resistance to change, a lack of support from groups, persistent violence, crime, corruption, instability, and a lack of inclusivity. The National Dialogue 2.0 should not be about saving the ANC. It is about saving our country. All stakeholders must put their shoulders to the wheel, rise above personal, parochial, and party interests, and put South Africa first. In many respects, National Dialogue 2.0 may well be the last throw of the dice. Brij Maharaj Image: File
