CoGTA flags dire audit findings as Umzinyathi racks up over R1bn in irregular spending
The embattled Umzinyathi District Municipality has come under renewed scrutiny after it was revealed that the institution has incurred more than R1 billion in irregular expenditure, alongside R323 million in unauthorised spending and R42 million in fruitless and wasteful expenditure.
The revelations came during an oversight visit by the KwaZulu-Natal Legislature's Co-operative Governance and Traditional Affairs (CoGTA) Portfolio Committee, which placed Umzinyathi firmly in the spotlight.
Residents in the district have repeatedly raised concerns over the unreliable water supply, with some areas—including Sibongile, Wasbank, and Glencoe—experiencing days without access to water.
Committee chairperson Marlaine Nair, speaking to the Courier after the meeting, described the situation as 'deeply concerning,' saying the municipality's persistent failures undermine both public trust and service delivery.
'We are extremely concerned that Umzinyathi continues to receive adverse audit opinions from the Auditor-General, despite being under administration since 2016,' said Nair.
She confirmed that this marks the third consecutive year the municipality has received an adverse opinion, signalling that its financial statements are unreliable and that there is ongoing non-compliance with legislation.
The municipality has also presented unfunded budgets for three consecutive years and is facing a severe cash flow crisis, which puts basic services—including water provision—at risk.
Despite spending over R1 billion on water infrastructure, major backlogs remain, with many projects stalled and infrastructure in disrepair.
The municipal manager was suspended earlier this year, while Mayor Ngubane resigned, adding to the instability.
'We've requested detailed reports within two weeks, including updates on Section 106 investigations into alleged corruption. We do, however, welcome the co-operation received from leadership and confirmation that the 2025/2026 budget is finally funded,' Nair concluded.
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