The KwaZulu-Natal Provincial Treasury has expressed serious concerns about the alleged use of the uThukela Development Agency (UDA) bank account by uThukela District Municipality to pay municipal employees’ salaries this week. Before February 25, there was a fear that uThukela workers might not receive their salaries. However, on February 24, a letter to employees signed by the municipal manager (MM) assured them that their salaries would start to reflect on the afternoon of the 24th.

There are now allegations that the district municipality used the agency’s funds to pay workers’ salaries. This reportedly happened after the municipality was unable to access its own funds because its bank accounts were frozen. The accounts were frozen following a High Court decision due to money owed to RASP Consultants CC.

In a letter dated February 26, 2026, the Provincial Treasury acknowledged the importance of ensuring that employees are paid on time. However, it stated that the alleged method used raises serious concerns about compliance with the Municipal Finance Management Act (MFMA), the Municipal Systems Act No. 32 of 2000 (MSA), and other applicable regulations.

Treasury demands detailed report

The Treasury Department has directed the uThukela mayor to submit a comprehensive written report within seven days. The report must include:

• A detailed record of all transactions processed through the UDA account on behalf of the municipality since the municipal accounts were frozen, including bank statements and authorisations.
• The legal basis for using the UDA account.
• Certified copies of council resolutions approving the decision.
• Confirmation that all statutory deductions were properly made.
• A legal opinion confirming compliance with the High Court order.
• Clear steps taken to regularise the municipality’s banking arrangements and financial position.

The department warned that failure to submit a complete and satisfactory response within the given time-frame will be regarded as non-co-operation, and the Provincial Treasury may consider further action.

Tensions at today’s council meeting

During today’s (February 27) council meeting, councillors gathered at the uThukela Council Chamber, demanding a face-to-face meeting instead of the virtual meeting allegedly called by the speaker.

In a letter addressed to the speaker, councillors claimed that the virtual meeting was intended to protect the municipal manager from allegations of financial misconduct. They further accused the municipal manager of misleading councillors about the amount borrowed.

According to the councillors, the municipal manager stated that R16 million was borrowed. However, they claim that R20 million was paid into the agency’s bank account.

The meeting ended up not happening.

The situation remains tense as councillors seek clarity and accountability over the municipality’s financial management.

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