A probe into iLembe District Municipality’s purchase of a mayoral vehicle has been ordered by KZN Cogta MEC Thulasizwe Buthelezi, citing concerns over possible regulation breaches.

In a letter addressed to council speaker Dolly Shandu, Buthelezi instructed the Municipal Public Accounts Committee (MPAC) to investigate the matter and requested that the Auditor-General review it during the municipality’s next audit.

The previous mayoral vehicle (a BMW) was written off in December 2022 after an accident that left 51-year-old Mandeni resident David Mdletshe seriously injured, while his nephew and a municipal employee suffered minor injuries.

The matter was formally reported to CoGTA in January by DA caucus leader in iLembe, Krsna Sing.

In his letter, Sing claimed that the purchase of a BMW X3 at R890 000 exceeded the maximum allowable price of R700 000 by R190 000.

“This is a clear breach of the municipality’s policy and constitutes irregular expenditure,” said Sing.

“Furthermore, the officials’ justification for using insurance money from the previous vehicle to top up the purchase price is unacceptable. This money should have been returned to the municipality’s funds, not used to indulge in luxury items.”

He added that iLembe is facing serious financial challenges, with residents going days without water and critical projects being delayed due to inadequate funding.

“It is appalling that the municipality would prioritise the purchase of a luxury vehicle over the basic needs of its residents.”

The municipality reportedly received R935 910 from insurers and used the payout to procure a replacement vehicle.

At a council meeting on December 5, 2024, councillors resolved that the cost of the new car should not exceed the insurance payout. They also acknowledged that the chosen vehicle would surpass the R700 000 limit set by national regulations.

To address this, council invoked Section 32 of the Municipal Finance Management Act, classifying the R190 000 excess as potential irregular expenditure, which could later be written off. The vehicle was purchased through National Treasury’s transversal tender process.

However, in his letter, MEC Buthelezi said it was unclear what the original vehicle had cost and who covered the shortfall on the purchase of the previous vehicle. He also reminded the council that Section 32 requires all irregular, unauthorised or fruitless expenditure to be reported to the mayor, the MEC and the Auditor-General.

“I wish to inform the municipality that I have not received any written report as contemplated in the section quoted above,” he said.

Sing welcomed the intervention, calling for councillors involved to be surcharged (made to personally repay any overspending) and for the municipal manager to be held accountable.

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