Staff Reporter
KwaZulu-Natal Finance MEC Francois Rodgers said on Tuesday he had redirected R17 million in savings from his ministry towards municipal anti-corruption and other support, as irregular and wasteful municipal spending in the province increased to R15.7 billion.
The largest municipal allocation, R6.5 million, will go to the Provincial Supply Chain Management unit in the KZN Treasury to strengthen support to municipalities battling unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).
According to Rodgers, UIFWE in KZN municipalities increased from R13.478 billion in June 2024 to R15.712 billion in June 2025. Ten municipalities accounted for most of the amount, with a combined R11.490 billion.
ALSO READ: Eskom load-reduction relief reaches 700,000 homes
National Treasury’s latest MFMA compliance report has said that supply-chain non-compliance remains a persistent problem in municipalities, with many councils failing to update or enforce SCM policies despite audit findings.
It said the national UIFWE balance rose from R264.10 billion in 2023/24 to R268.13 billion in 2024/25, driven by weak internal controls and poor consequence management.
Said Rodgers in a statement on Tuesday: “The continued rise in irregular and wasteful expenditure is unacceptable and undermines service delivery. Through these targeted interventions, we are strengthening oversight, closing governance gaps, and ensuring that municipalities comply fully with the MFMA.”
The support will focus on UIFWE reduction strategies, SCM governance and compliance, contract management and technical capacity among officials.
Eight municipalities are expected to benefit directly from the provincial intervention: uMkhanyakude District Municipality, uThukela District Municipality, uMzinyathi District Municipality, Newcastle Local Municipality, Mtubatuba Local Municipality, AbaQulusi Local Municipality, Mpofana Local Municipality and Zululand District Municipality.
Two major urban municipalities, eThekwini and uMsunduzi, will not form part of the R6.5 million provincial support package because they are receiving assistance directly from National Treasury, Rodgers said.
eThekwini is KZN’s only metropolitan municipality and the province’s economic hub, while uMsunduzi, which includes Pietermaritzburg, has faced repeated financial management and service delivery failures.
Rodgers has also allocated R6 million to the Provincial Accountant-General’s office for its work with the KZN Department of Education.
ALSO READ: Brett Herron named GOOD Party mayoral candidate for City of Cape Town
The education allocation comes amid severe budget strain in the province’s largest department. Parliament’s Portfolio Committee on Basic Education was told last year that more than 80% of the department’s budget was used to pay employees, that it faced a projected R1.4 billion overspend in 2025, and that its 2025/26 compensation budget shortfall was estimated at R2.7 billion.
The remaining R4.5 million from the ministry savings will go towards implementing the Provincial Financial Recovery Plan. KZN Treasury’s 2025-2030 strategic plan says the province is operating in a severely constrained fiscal environment that threatens service delivery, and that the recovery plan is aimed at restoring fiscal discipline, cutting wasteful expenditure, improving revenue collection and strengthening governance.
Rodgers’ office said the latest allocations build on reforms introduced in the 2024/25 financial year, when savings from the ministry were reinvested in the development of a digital procurement system aimed at reducing opportunities for fraud and corruption in supply-chain processes.
