KZN Treasury Withdraws Financial Support from Umkhanyakude District Municipality


Kwazulu-natal: KwaZulu-Natal Treasury has officially withdrawn its financial support services to Umkhanyakude District Municipality, citing concerns over wasteful expenditure and lack of cooperation from municipal officials. Finance MEC Francois Rodgers confirmed the decision in a formal letter addressed to the municipality’s mayor, Siphile Mdaka.



According to South African Government News Agency, the decision was made to conserve provincial government resources and redirect them to areas where it is feasible to work effectively towards building a capable and ethical state. KZN Treasury teams had frequently traveled to Umkhanyakude in advance to facilitate productive sessions with municipal officials. However, these efforts were often thwarted by late cancellations of meetings, leading to fruitless and wasteful expenditure.



Rodgers noted that the Treasury has limited resources and emphasized the need for cooperation from municipal managers to justify continued support. Due to the lack of such cooperation, Rodgers instructed his team to withdraw from the municipality and reallocate resources to other municipalities in need of support.



The withdrawal of support comes amid increased scrutiny of Umkhanyakude District Municipality. KwaZulu-Natal MEC for Cooperative Governance and Traditional Affairs, Thulasizwe Buthelezi, has placed the municipality under administration by invoking Section 139(1)(b) of the Constitution, which allows provincial intervention when a municipality fails to deliver services. Additionally, a forensic investigation under Section 106 of the Municipal Systems Act has been launched to probe allegations of corruption and maladministration within the municipality, aiming to hold officials accountable for any wrongdoing uncovered.

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