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KZN Treasury steps into iLembe procurement, governance scandal

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Staff Reporter

Allegations of irregular procurement, possible fruitless and wasteful expenditure and governance failures at iLembe District Municipality have been referred to KwaZulu-Natal Treasury after being raised before the Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA).

The allegations include claims involving procurement processes, financial management and governance failures at the district municipality, which serves KwaDukuza, Mandeni, Ndwedwe and Maphumulo on the province’s north coast.

“As the District Champion for iLembe, I take these allegations very seriously. Where there is evidence of wrongdoing, decisive action must be taken against those responsible, in line with applicable legislation,” said KwaZulu-Natal Finance MEC Francois Rodgers, on Thursday.

Treasury said iLembe District Municipality had already engaged oversight authorities and indicated that it intended to institute an external investigation through an independent body.

“KZN Treasury will work closely with COGTA and other relevant stakeholders to ensure that this matter is addressed in a manner that restores public confidence and strengthens governance at municipal level,” Rodgers said.

In May, Rodgers said that municipalities had to adopt credible, funded budgets, comply with payment obligations, strengthen procurement and contract management, and enforce consequence management for financial misconduct.

Earlier this month, KZN Treasury said unauthorised, irregular, fruitless and wasteful expenditure in the province’s municipalities had increased from R13.478 billion in June 2024 to R15.712 billion in June 2025, with 10 municipalities accounting for R11.490 billion.

iLembe said in January that the Auditor-General had issued unqualified audit opinions for both the municipality and Enterprise iLembe, but its own mid-year report also recorded weaknesses in financial viability, municipal transformation, ICT backlogs and non-revenue water of 41%.

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