KZN Treasury Sets Aside R12.5 Million to Improve Municipal Finances

KwaZulu-Natal MEC for Finance Francois Rodgers announced that R6.5 million has been directed to the Provincial Supply Chain Management (SCM) Unit within the provincial Treasury.

The KwaZulu-Natal provincial government has allocated R12.5 million to strengthen financial management and oversight in municipalities as part of efforts to curb rising levels of irregular and wasteful expenditure.

KwaZulu-Natal MEC for Finance Francois Rodgers announced that R6.5 million has been directed to the Provincial Supply Chain Management (SCM) Unit within the provincial Treasury. The funding will support targeted interventions aimed at addressing persistent weaknesses in municipal financial administration and improving compliance with financial regulations.

The allocation comes amid growing concern over the sharp increase in Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE) across municipalities in the province. According to the provincial Treasury, UIFWE rose from R13.478 billion in June 2024 to R15.712 billion in June 2025. Ten municipalities account for R11.490 billion of the total amount.

Eight Municipalities to Receive Focused Treasury Support

Provincial Treasury assistance will focus on eight municipalities identified as requiring urgent intervention. These are uMkhanyakude District Municipality, Mtubatuba Local Municipality, uThukela District Municipality, AbaQulusi Local Municipality, uMzinyathi District Municipality, Mpofana Local Municipality, Newcastle Local Municipality and Zululand District Municipality.

Support measures will include the development of UIFWE reduction strategies, stronger supply chain governance, improved contract management systems and technical training for municipal officials.

While provincial Treasury will focus on these municipalities, eThekwini and uMsunduzi Municipalities are already receiving support directly from National Treasury.

Rodgers said the continued rise in irregular and wasteful expenditure cannot be allowed to continue because it diverts resources away from essential public services and weakens public confidence in local government.

He noted that strengthening oversight mechanisms and closing governance gaps are necessary steps to ensure municipalities comply fully with the Municipal Finance Management Act (MFMA).

Savings Redirected Towards Financial Reform and Recovery

The allocations form part of R17 million in savings generated within the MEC's Ministry during the 2025/26 financial year. Alongside the R6.5 million allocated to the SCM Unit, a further R6 million has been directed to the Provincial Accountant-General's Office to strengthen its support work with the Department of Education.

The remaining R4.5 million will be used to implement the Provincial Financial Recovery Plan, which is intended to improve financial sustainability and governance across government institutions.

The latest interventions build on reforms introduced by Rodgers during the previous financial year. One of the key initiatives involved reinvesting departmental savings into the development of a digital procurement system designed to reduce opportunities for fraud, corruption and manipulation within supply chain processes.

Provincial Treasury believes that combining stronger oversight, improved systems and targeted support for struggling municipalities will help improve accountability and ensure public funds are used more effectively.

The funding allocations form part of the province's broader strategy to strengthen financial governance, combat corruption and improve service delivery outcomes for communities across KwaZulu-Natal.