Councillors demand tighter oversight after R46m eThekwini EPWP extension and R6.8m irregularities uncovered

eThekwini councillors have called for stronger oversight of the municipality’s Expanded Public Works Programme (EPWP) after a report identified irregularities totalling R6.8 millionR46 million in funding until 31 December 2026.

Why the extension went ahead

The municipality told council it separated the Auditor-General South Africa (AGSA) matter from the contract extension because discontinuing EPWP services at this stage would negatively impact communities and place additional strain on already limited municipal resources.

Findings and financial action

The EPWP report cited a range of irregularities, including payments for services not rendered, payments to deceased beneficiaries, payments to ineligible beneficiaries, and instances where individuals allegedly received EPWP payments while employed by other government institutions. The report linked these problems to R6.8 million in losses.

Public Works and Infrastructure Minister Dean Macpherson halted further payments to the municipality in April 2026. The minister said the controls introduced by the municipality would be important in preventing similar problems in the future.

Planned grant agreement and programme roles

The municipality is expected to enter into a grant agreement with the National Department of Public Works and Infrastructure (DPWI) for the 2026/27 EPWP grant, estimated at R7.4 million. The six-month contract extension was described by the municipality as a measure to ensure continuity while the process of engaging new beneficiaries is under way.

The report lists the EPWP’s roles and participant numbers as follows:

• Administration support: 32 participants
• Waste management directorate: 440 participants
• Area-based management: 44 participants
• Parks and recreation: 92 participants
• Social sector: 414 participants
• Community-based water agents: 41 participants
• Safer Cities: 18 participants

Councillor reactions

DA Exco member Councillor Andre Beetge said the EPWP had been controversial since its inception and raised funding concerns. He stated that over six years the national government contributed R257.8 million, while the ratepayers of eThekwini contributed R724.1 million, adding that “more than two-thirds of the programme has been funded by the residents and businesses of this city.”

Beetge questioned whether the investment had delivered measurable value, asking if streets were cleaner, water leaks identified more effectively, potholes disappearing, refuse collection improving, parks better maintained, crime hotspots being reported, or unlawful activities diminishing. He said the reality experienced by residents “tells a different story,” and called the programme an indictment for failing to provide proper supervision, meaningful work, effective skills development, and a pathway into permanent employment.

ActionSA councillor Thozama Ngubane described EPWP as a poverty-alleviation initiative that provides work experience but warned that funding alone cannot justify extending contracts without addressing weaknesses identified by the Auditor-General. She said the extension “must be accompanied by stronger governance measures, transparent recruitment processes for the next intake, proper monitoring of beneficiaries, and regular performance reporting.”

IFP Ward 99 councillor Jane Naidoo warned of the social and economic implications for vulnerable households if the programme were discontinued and raised concern about the programme’s increasing reliance on the municipal budget. She said the programme should not be exploited for party activism or election campaigns and that recruitment after December 2026 must focus on socio-economic needs, be transparent, and equitable.

What happens next

The municipality will proceed with the six-month contract extension to maintain service continuity while engaging new beneficiaries and finalising a grant agreement with the DPWI for the 2026/27 EPWP funding.