The under-fire Umzinyathi District Municipality will be probed for allegations of serious maladministration following a proclamation signed by President Cyril Ramaphosa authorising the Special Investigating Unit (SIU) to conduct the investigation.

SIU spokesperson Kaizer Kganyago said the investigation will cover the period from March 2020 to November 2025 and includes scrutiny of the allegedly inflated price paid for a generator at the Vants Drift Water Treatment Plant in Nquthu.

“The investigation will determine whether contracts and related payments were conducted in a manner that was not fair, competitive, transparent, equitable or cost-effective,” Kganyago said.

Contracts and payments under scrutiny

The probe follows a series of governance concerns at the municipality. Last year, the municipal manager was suspended amid allegations of corruption linked to a R5.7 million payment for water projects that were allegedly never carried out.

In October, Minister of Co-operative Governance and Traditional Affairs Velenkosini Hlabisa, during a visit to Dundee raised alarm over R1.4 billion in irregular expenditure incurred by the municipality during the previous financial year. His comments followed an Auditor-General’s report that criticised the management of municipal finances across the province.

 Kganyago said the investigation would assess whether procurement processes and related payments were conducted in a fair, competitive, transparent, equitable and cost-effective manner.

“The SIU will also probe any potential contraventions of applicable legislation, National Treasury guidelines, and the municipality’s own policies and procedures,” Kganyago said.

Possible prosecutions and recoveries

Should evidence of criminal conduct emerge, the SIU will refer the matter to the National Prosecuting Authority for further action.

The District Municipality has been subject to much criticism by hard-pressed Endumeni residents who have led marches against the constant water issues, accompanied by effluent leaks, and a poor billing system that has impacted service delivery.

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