KZN Treasury Pulls Support from Umkhanyakude Over Wasteful Spending, Non-Cooperation

The KwaZulu-Natal (KZN) Provincial Treasury has formally withdrawn its financial support services from the embattled Umkhanyakude District Municipality, citing a persistent pattern of non-cooperation and wasteful expenditure. The decision, which underscores the province’s new emphasis on responsible resource allocation and accountability, was confirmed in a letter addressed to the municipality’s leadership by Finance MEC Francois Rodgers on Thursday.

Treasury Withdraws to Protect Resources

In his correspondence with Umkhanyakude Mayor Siphile Mdaka, MEC Rodgers expressed concern over repeated incidents in which KZN Treasury officials travelled long distances to the municipality only to have scheduled engagements abruptly cancelled by municipal counterparts. These late cancellations—often communicated the night before or the morning of meetings—resulted in financial losses due to wasted travel and accommodation expenses.

“These [recurring late cancellations] have resulted in fruitless and wasteful expenditure being incurred by KZN Provincial Treasury,” Rodgers stated.

The MEC stressed that such conduct demonstrates a clear lack of commitment and violates the conditions under which Treasury offers support to municipalities.

“Treasury has limited resources, and in determining which municipalities to support, the municipal manager is required to commit to the initiative and to provide assurance that the Treasury teams will receive full cooperation. This clearly has not happened,” Rodgers added.

As a result, Treasury has reassigned its personnel and financial support resources to municipalities that have demonstrated a willingness to cooperate and engage meaningfully in institutional strengthening initiatives.

Deepening Crisis in Umkhanyakude: Municipality Under Administration

The decision by the KZN Treasury comes at a time when Umkhanyakude District Municipality is already under significant provincial scrutiny. Earlier this month, MEC for Cooperative Governance and Traditional Affairs (COGTA), Thulasizwe Buthelezi, invoked Section 139(1)(b) of the Constitution to place the municipality under administration.

Section 139(1)(b) allows a provincial government to intervene when a municipality is unable or unwilling to fulfil its constitutional obligations, particularly around service delivery.

The intervention includes the deployment of an administrator and a full review of operational practices within the municipality, which has long been dogged by allegations of mismanagement, irregular spending, and political instability.

Forensic Probe Underway Into Corruption Allegations

Alongside the administrative intervention, COGTA has launched a forensic investigation under Section 106 of the Municipal Systems Act, aimed at unpacking allegations of corruption and maladministration within Umkhanyakude.

“This investigation aims to thoroughly examine the various allegations. The intervention will ensure that officials are held accountable should any wrongdoing be uncovered,” said MEC Buthelezi.

The probe is expected to scrutinise tender processes, irregular appointments, financial discrepancies, and the overall governance culture of the district municipality, which serves a population of over 600,000 people in northern KwaZulu-Natal.

A Municipality in Decline

Umkhanyakude has consistently been flagged as one of the province’s most troubled municipalities, with long-standing concerns over its ability to deliver basic services such as water supply, waste management, and road maintenance.

The district has also seen significant political infighting, a revolving door of municipal leadership, and poor audit outcomes. Communities in towns such as Jozini, Mtubatuba, and Hlabisa have held repeated protests over failing infrastructure and neglected service delivery obligations.

The cumulative impact of these governance failures has not only strained public trust but also compromised the municipality’s eligibility for certain conditional grants and developmental support programmes.

Treasury Prioritising Capable and Ethical Governance

The Treasury’s withdrawal aligns with a broader shift in provincial and national government policy, which now seeks to prioritise capable, cooperative, and ethical municipalities as primary recipients of technical and financial support.

“We must conserve provincial government resources and redirect them where it is possible to work freely in the spirit of building a capable and ethical state,” said MEC Rodgers.

Analysts say the move sends a strong message to municipalities across South Africa that provincial and national government support is conditional upon institutional accountability and demonstrable efforts to improve.

What’s Next for Umkhanyakude?

With financial support withdrawn and a forensic investigation underway, the future of Umkhanyakude’s governance now hinges on the effectiveness of the administration team appointed by COGTA and the findings of the Section 106 probe.

If systemic irregularities are confirmed, further actions may include disciplinary proceedings, criminal referrals, and restructuring of the municipal leadership. The municipality will also have to work to rebuild trust with both provincial structures and the communities it serves.

In the meantime, service delivery in the region remains at risk, and residents are watching closely to see whether these interventions will finally bring about accountability and reform.

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