By Thapelo Molefe
By the time councillors and officials gathered at Impendle Local Municipality offices on Wednesday, the bank account was nearly empty, salaries were unpaid, and service delivery projects had stalled.
It was against this backdrop that KwaZulu-Natal Cooperative Governance and Traditional Affairs MEC Thulasizwe Buthelezi arrived to “crack the whip” on a municipality he says has slipped into financial and administrative paralysis.
Buthelezi’s oversight visit followed the municipality’s failure to pay January salaries to councillors and staff after municipal coffers were depleted. According to the department, the crisis is not new: Impendle defaulted on salaries in May 2025 and narrowly avoided a similar collapse in December.
Addressing a tense full council sitting, the MEC demanded immediate explanations for what he described as a breakdown in governance and internal controls.
“A municipality cannot be a ship without a captain. This leadership vacuum has directly contributed to the current state of lawlessness and financial ruin we see today,” Buthelezi said.
The MEC revealed that Impendle has been operating without a mayor since July 2025, calling it a serious dereliction of duty. To restore political leadership, he directed that a mayor be formally appointed by next Thursday.
In a further escalation, all 10 councillors have been served with the municipal Code of Conduct and instructed to submit written representations by the same date, explaining why they should not be held personally liable for failing to exercise proper oversight.
Buthelezi also exposed the depth of the municipality’s financial distress. As of 31 December 2025, Impendle had a closing bank balance of just R1.9 million, while sitting on unspent conditional grants totalling R24 million. This left the municipality unable to cash back grants, service debts, or meet basic operational costs.
“We sympathise deeply with the workers and their families who are once again facing uncertainty,” said Buthelezi. “It is unacceptable that the municipality has repeatedly failed to pay salaries on time since May 2025.”
The MEC flagged the mismanagement of R43.5 million in conditional grants as a key driver of the crisis. While critical projects remain incomplete, some grant funds were diverted to cover operational expenses, including salaries, while other portions were returned to National Treasury due to underspending.
“It is a betrayal of the residents of Impendle that money meant for water, roads and electricity is being sent back to Pretoria or used to cover administrative failures while our people continue to wait for services,” Buthelezi said. “This ends now.”
Oversight reports presented to the MEC paint a grim picture. Impendle’s audit outcomes deteriorated sharply from successive unqualified audits between 2020/21 and 2023/24 to an adverse audit opinion in 2024/25. The municipality has also adopted an unfunded budget for the 2025/26 financial year, with Eskom debt cited as a major contributor.
As of December 2025, Impendle owed Eskom more than R668 million, further squeezing its already fragile cash flow. Financial indicators show a current ratio of just 0.40:1, far below acceptable norms, and net debtor days stretching to 387.
Service delivery has suffered as a result. Road rehabilitation projects funded through the Municipal Infrastructure Grant and the Integrated National Electrification Programme are behind schedule, with some contractors halting work over fears they will not be paid.
Buthelezi warned that the provincial department would not hesitate to take stronger action should the council fail to comply with his directives.
“This municipality must choose accountability and stability, or face consequences provided for in law,” he said.
The department said it would closely monitor progress in the coming weeks as it seeks to stabilise the rural municipality, which serves a population of about 33,000 in the Umgungundlovu District.
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