Introducion on the oversight visit to KwaZulu-Natal, eThekwini, uGu, Msunduzi and uMhlathuze: October 2024

23 May 2025

The COGTA por,olio Commi0ee conducted oversight visit in KwaZulu-Natal from 11 to 17 October 2024, focusing on eThekwini, uGu and UMsunduzi and Umhlathuze; to assess their funcLonality following measures put in place by several bodies that support municipaliLes. Service delivery in KwaZulu-Natal has been affected by local government challenges, with seven (7) dysfuncLonal municipaliLes and eight (8) municipaliLes under secLon 139 intervenLon.

The Commi0ee observed several overarching challenges that exist in all three municipaliLes. These challenges tend to be more glaring during community engagements, despite glowing presentaLons in reports from the administraLon. High unemployment and poverty plagues the ciLzens. Huge unaffordable water bills and poor management of indigent registers creates a huge burden for the poor who cannot afford to pay for services. There were serious adverse Audit outcomes, with challenges of inappropriate managerial skills, supply chain irregulariLes, inadequate revenue collecLon and financial mismanagement in all municipaliLes. The commi0ee insists on correcLve measures to address Unauthorised, Irregular, Fruitless and Wasteful Expenditure, with invesLgaLons and consequence management. The Commi0ee observed that municipaliLes are struggling with decaying and poorly maintained infrastructure; illegal electricity connecLons, mushrooming informal se0lements and unplanned urbanizaLon. Since all municipaliLes were prone to flood disasters, the Commi0ee is closely monitoring preparedness and responsiveness in disaster management.

A PresidenLal Working Group and secLon 154 support from the province were introduced to improve funcLonality in EThekwini (a DDM pilot site) because the deterioraLon in water and sewerage treatment plants caused water shortage in communiLes and contaminaLon affected tourism and threats of business relocaLon. The commi0ee expressed concerns about improper consequence management such as flawed suspensions of managers. The commi0ee has, however, observed the improvement through the adopLon of a fully funded budget with cash surplus, ZERO debt to Eskom and Water boards and significantly reduced service delivery protests.

Umsunduzi, a hung municipality with no coaliLon agreement but poliLcally stable; experiences serious challenges in the supply of water and electricity to communiLes, with potholes, poor refuse removal and intolerable filth. Consequently, the municipality has been on two occasions under intervenLons in terms of secLon 139 (1) (b) of the ConsLtuLon. The Commi0ee found that Umsunduzi is under Treasury debt relief scheme for the debt with Eskom and Water Boards. It has very poor revenue collecLon, with several cases of maladministraLon and irregulariLes under invesLgaLon. There are many illegal electricity connecLons and illegal transformers, and water crisis reported by communiLes from Vulindlela and Willowfountain.

In Ugu, the major issues of “chronic” water shortages arises from the mass influx of residents that exceeded available supply of water. The commi0ee observed that Ugu was no longer classified as dysfuncLonal, since its infrastructure spending was 100% and relies heavily on Disaster Relief Grant to repair infrastructure. However its funcLonality is affected by poliLcal dynamics that hamper important appointments, such as that of the Municipal Manager and its poor revenue collecLon is largely due to its rural base with limited tax returns.

The Commi0ee also held an engagement with communiLes and amakhosi (Dube, Sokhulu, Mbonambi and Mkhwanazi) together with Richards bay Minerals, a company that holds a mining license, for Ltanium on the land under amakhosi menLoned. The community reported concerns about the inconsistent and unsaLsfactory benefit accruing to host communiLes, high handed and bullying approach by the RBM company that has destroyed the environment, such as local hills, rivers and contaminated consumable water. RBM raised concerns about unsaLsfactory management of community trust–a ma0er that RBM took to court and lost the case. The Commi0ee is deeply sympatheLc to the plight of the community and remains dissaLsfied about the lack of commitment of RBM to address community concerns and the serious risk of violence and disrupLon of mining operaLons. The Minister for Mineral and Energy Affairs has been approached to address the ma0er with urgency.

Finally, this report was approved by the Portfolio Commi0ee, and we seek approval for adoption by this the house.