KZN Treasury Allocates R17m to Curb Municipal MFMA Non-Compliance

Posted 09 June 2026 Written by Acts Online
Category Local Government

Brought to you by SAnews: The KwaZulu-Natal Department of Treasury has redirected R17 million in savings from the MEC’s Ministry during the 2025/26 financial year to enforce compliance with the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA) and curb rising unauthorised, irregular, fruitless, and wasteful expenditure (UIFWE).

In terms of the oversight mandates established under the MFMA, the KwaZulu-Natal MEC for Finance, Francois Rodgers, allocated R6.5 million of these funds to the Provincial Supply Chain Management (SCM) Unit. This intervention is designed to address systemic weaknesses in municipal financial management. Provincial treasury data indicates that UIFWE within the province’s municipalities increased from R13.478 billion in June 2024 to R15.712 billion in June 2025, with ten municipalities accounting for R11.490 billion of that total.

An additional R6 million has been allocated to the Provincial Accountant-General’s Office to enhance financial governance and oversight within the provincial Department of Education. The remaining balance of R4.5 million from the R17 million savings pool will fund the implementation of the Provincial Financial Recovery Plan.

While eThekwini Metropolitan Municipality and uMsunduzi Local Municipality continue to receive direct support from the National Treasury, the provincial SCM Unit will deploy focused interventions across eight specific municipalities. These interventions will focus on developing and implementing UIFWE reduction strategies, strengthening SCM governance, improving contract management, and building technical capacity among municipal officials. The targeted municipalities are:

  • uMkhanyakude District Municipality
  • Mtubatuba Local Municipality
  • uThukela District Municipality
  • AbaQulusi Local Municipality
  • uMzinyathi District Municipality
  • Mpofana Local Municipality
  • Newcastle Local Municipality
  • Zululand District Municipality

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, professional advisors operating in KwaZulu-Natal must note the heightened regulatory scrutiny on municipal procurement processes.
  • For your business: Advisory firms, auditors, and consultants bidding for municipal contracts in the affected KwaZulu-Natal municipalities must prepare for stricter SCM compliance checks, tighter contract management reviews, and rigorous alignment with MFMA requirements.
  • For your clients: Clients who act as suppliers or service providers to the eight designated municipalities must ensure absolute compliance with SCM regulations and contract terms, as provincial Treasury oversight will actively target irregular and unauthorised expenditure pathways.

Originally published at https://www.sanews.gov.za/south-africa/kzn-treasury-allocates-funds-strengthen-governance-municipal-support

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