Endumeni Municipality has approved a provincial forensic investigation into alleged financial irregularities, including a R17-million debt write-off and contracts where service providers were reportedly paid for incomplete work.

The decision was taken at a marathon council meeting, which again saw the municipality’s budget rejected.

Cllr Naresh Gopie called for scrutiny of contracts involving upfront payments, including rural electrification projects and the stalled Hajee Jamal Street upgrade, which has been dormant since January.

Gopie said he had repeatedly emailed Municipal Manager Musawenkosi Hadebe requesting meetings of the Municipal Public Accounts Committee, which he chairs, but had received no response.

Hadebe countered that calling committee meetings was the chairperson’s responsibility.

Cllr Saleem Abdool specifically requested that the R17-million debt write-off, approved by the ANC, ABC and IFP in 2023, be included in the investigation.

ANC Cllr Ameena Sadeck raised concerns about the uncontrolled growth of informal settlements and the financial burden of extending services to them.

Mayor Mcebo Mkhize also warned that underspending on Municipal Infrastructure Grant funds could put future allocations at risk.

Recovery plan needed

Provincial technical expert Thando Manda said Endumeni needed an urgent financial recovery plan, including cuts to overtime and standby allowances and action to address electricity losses.

He revealed that electricity losses were approaching 47% of the power purchased from Eskom.

One proposal is for Eskom to take over electricity operations, with the municipality acting as an agent. Electricity revenue would be ring-fenced in a separate, Eskom-monitored account, while the utility would invest in ageing infrastructure.

However, councillors were reluctant to commit to such a far-reaching arrangement with only a week remaining in their term.

One municipal official, speaking anonymously to the Courier after the meeting, said the incoming council was inheriting a crisis.
“The new council is inheriting a storm.
“Turning this sinking ship around will be like rescuing the Titanic without Jack and Rose.”

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