Municipal manager admits to nearly year-long payroll scandal involving dual payments.
Amajuba District Municipality in KwaZulu-Natal (KZN) has been exposed for knowingly paying two councillors for a single position — a scandalous irregularity that has persisted for nearly a year despite being flagged by officials and council members.
The admission was made by acting municipal manager Nandi Dlamini during a joint oversight visit by the portfolio committee on Cooperative Governance and Traditional Affairs (Cogta) and the Standing Committee on Public Accounts (Scopa) on Wednesday, 28 January.
The revelation has sparked serious concerns about financial oversight and administrative accountability at the municipality.
Dlamini told parliamentarians that while the Electoral Commission of South Africa gazetted 29 councillors, the municipality has been paying 30 since May 2025.
She initially attributed the confusion to Team Sugar, a political party from Newcastle, which withdrew one councillor from the Newcastle Local Municipality and replaced him with another.
“Now I think that’s when the confusion started with the municipality. From what I’m told, that started in May 2025,” Dlamini said.
However, her explanation was swiftly challenged by committee members who demanded clarity on the straightforward issue of how many councillors were on the municipal payroll.
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Committee grills officials over contradictory information
The committees raised alarm over inconsistent information provided by municipal leadership, with mayor Thembelihle Mthembu’s opening remarks contradicting the payroll figures later revealed during questioning.
Cogta committee chairman Dr Zweli Mkhize pressed Dlamini on the discrepancy, rejecting attempts to complicate what he described as a simple matter. “No, we’re asking you, once you try and be technical and tricky, I don’t think we’re going to end up well. The issue is simple. How many councillors are paying? Your mayor says that 29. You now have two answers. Who’s telling us the real story and who’s not telling us the real story?” Mkhize questioned.
The chief financial officer confirmed to the committee that the municipality has been paying 30 councillors since as early as May, despite only 29 being officially recognised.
When questioned about the nature of the irregularity, Dlamini clarified that two separate individuals were receiving salaries for what should have been a single councillor position.
“Two counsellors with two names. Two people, two counsellors in the place of one, but two salaries,” she confirmed to the committee.
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Municipal manager accepts responsibility, commits to corrective action
Mkhize emphasised that as accounting officer, Dlamini bears full responsibility for authorising payments and ensuring compliance with council resolutions, regardless of political disputes or legal proceedings.
Dlamini initially cited legal advice suggesting that because the matter was before the court, the status quo should remain.
However, Mkhize rejected this justification, pointing out that paying two people for one position could not be considered maintaining the status quo.
“Our issue is that the municipal manager has authorised two salaries to go to two people instead of one. You have authorised; you are the municipal manager; you are the accounting officer,” Mkhize said.
Confronted with the gravity of the irregularity, Dlamini acknowledged it constituted wasteful and potentially unlawful expenditure. “Indeed, chair. It is irregular. I will look into that matter immediately,” she said.
Dlamini acknowledged that she should have stopped the payments when she assumed her position.
When asked what action to take, Dlamini stated that the issue was straightforward and required consequence management.
The committees made clear that all individuals responsible for authorising or facilitating the improper payments will face strict consequences.
Additionally, all involved parties must take immediate corrective action to protect public funds and restore the municipality’s credibility.
Broader governance failures exposed across KZN municipalities
The revelation at Amajuba came during a four-day joint oversight visit to KZN focused on municipalities identified by the Auditor-General of South Africa as distressed or dysfunctional.
Beyond the payroll scandal, the committees highlighted numerous concerns.
These include absenteeism, poor fleet and diesel management, ineffective use of consultants, water supply and infrastructure challenges, and a disconnect between budget expenditure and service delivery outcomes.
Mthembu told parliamentarians that the council has a 24% service-delivery backlog in water and a 3% backlog in sanitation.
He attributed water losses to ageing infrastructure and illegal connections, noting that some businesses redirect water flow to their premises, depriving communities of access.
“Some of the issues we found are that some businesses would redirect the flow of our water to their business premises hence part of the community would not have access to water, but we are dealing with those,” Mthembu said. He added that the municipality has started a programme called “the war on water leaks and dry taps” to locate and address leaks.
The municipality has been directed to provide comprehensive reports and strategies addressing these issues, including strengthening oversight, improving revenue collection, and ensuring functional disciplinary and accountability structures.
A detailed post-audit action plan must be submitted within three months, covering all identified governance, financial and operational irregularities.
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