KZN Treasury Pushes uMkhanyakude to Enforce Accountability in Finances

KwaZulu-Natal Finance MEC Francois Rodgers has welcomed commitments by the leadership of the uMkhanyakude District Municipality to tighten financial controls, enforce accountability, and improve consequence management following serious concerns raised by the Auditor-General (AG).

Rodgers met with Mayor Siphile Mdaka and senior officials at the KZN Provincial Treasury offices in Pietermaritzburg this week, where the AG’s findings and persistent governance weaknesses were discussed in detail.

AG Findings Highlight Financial Mismanagement

The Auditor-General flagged several troubling issues at the municipality, including:

• Non-compliance with the Municipal Finance Management Act (MFMA).

• Overspending and unauthorised expenditure.

• Weak controls over supply chain management.

• Poor debt collection, contributing to declining revenue.

These shortcomings have raised alarm over the municipality’s ability to meet its financial obligations and deliver reliable services to residents.

Municipality’s Commitment to Reform

In response, Mayor Mdaka assured provincial authorities that both political leadership and administrative management are committed to turning the situation around.

Among the corrective measures announced were:

• Establishment of an internal audit committee and a risk committee — functions previously outsourced.

• Strengthening of supply chain management systems, with the return of support from KZN Treasury.

• Development of clear turnaround strategies with set timelines to address governance failures.

Mdaka stressed that the municipality sees Treasury not only as a regulator but as a partner in building financial discipline and welcomed continued support.

MEC Rodgers’ Call for Accountability

MEC Rodgers applauded the move to establish internal oversight structures, describing them as “a critical step toward accountability.”

“You must now make sure that their findings and recommendations are heeded and corrective measures taken so the municipality achieves compliance with financial management laws and regulations,” Rodgers urged.

He further emphasized that Treasury’s role would be to guide and monitor, but ultimate responsibility lies with the municipality’s political and administrative leaders.

Building a Capable and Ethical State

Rodgers framed the intervention within his broader goal of building a capable, accountable, and ethical state at the local government level.

“As agreed by both institutions, we look forward to clearly defined action plans and turnaround strategies with time frames. Our Treasury team is on hand to guide this process. But as political leaders of our institutions, it becomes our mandate to monitor this process to ensure success,” he said.

The Road Ahead

uMkhanyakude’s financial mismanagement has long been a barrier to effective service delivery. With new commitments in place — including the appointment of in-house audit and risk committees and closer collaboration with Treasury — there is cautious optimism that the municipality can restore public confidence, financial compliance, and service stability.