The Democratic Alliance (DA) in iLembe has formally submitted its concerns regarding the municipality’s 2024/2025 Annual Report following serious findings by the Auditor-General (AG).

The report confirms that service delivery is deteriorating, financial controls are weak and oversight failures are costing the people of iLembe millions.

Water losses have escalated to R123.76-million (41%), up from R110-million the previous year. This represents not only infrastructure decay but also a failure of management and preventative maintenance.

Reservoir overflows, persistent leaks and slow repairs are becoming the norm. Every litre lost is money lost to residents who already struggle with unreliable water supply.

The debtor book now stands at R945.89-million, having increased by R37-million. Despite a slight improvement in the collection rate from 45% to 55% – a figure inflated by write-offs – the municipality remains financially unstable. Poor billing systems, unresolved disputes and weak debt enforcement continue to undermine financial recovery.

The AG reported R37.51-million in irregular expenditure, largely linked to procurement and contract management failures.

This reflects systemic weaknesses in supply chain management and oversight. The DA has called for the appointment of a dedicated legal professional to review all municipal contracts to prevent further financial losses.

The AG’s findings also show that performance reporting systems are unreliable and that internal controls failed to detect serious deviations. Council oversight was compromised due to misaligned indicators and inadequate supporting evidence.

iLembe has again failed to comply with Section 65(2) of the MFMA, which requires creditors to be paid within 30 days. This recurring breach damages small businesses and exposes the municipality to reputational and legal risk.

The DA has demanded:

• The establishment of a task team to resolve technical and billing queries within three months.
• Immediate implementation of a 48-hour water leak repair turnaround strategy.
• An increase in repairs and maintenance allocation to treasury-recommended levels.
• Appointment of a legal professional for contract oversight.
• Filling of 74 critical vacancies.
• Consequence management for senior officials who failed in their oversight responsibilities.

Residents of iLembe deserve competent governance, financial discipline and reliable service delivery.

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