uLundi, 27 July 2025 – The KwaZulu-Natal Cooperative Governance and Traditional Affairs MEC, Reverend Thulasizwe Buthelezi, has received formal correspondence from the Auditor-General of South Africa (AGSA), Ms. Tsakani Maluleke.
The Auditor-General has requested the MEC’s intervention in the Umkhanyakude District Municipality due to the municipality’s consistent failure to address material findings. These findings stem from the municipality’s inability to implement a credit and debt collection policy, as required by Section 62(1)(f)(ii) of the Municipal Finance Management Act, 56 of 2003 (MFMA).
According to the AG’s correspondence:
A material irregularity is defined in the Public Audit Act, 25 of 2004 (PAA), as “any non-compliance with, or contravention of, legislation, fraud, theft or a breach of a fiduciary duty identified during an audit performed under this Act that resulted in or is likely to result in a material financial loss, the misuse or loss of a material public resource or substantial harm to a public sector institution or the general public.”
In the correspondence, the Auditor-General highlighted that “The failure of the municipality to implement the municipality’s credit and debt collection policy for a number of years and to take reasonable steps to recover outstanding debt from consumers is likely to result in a material financial loss for the municipality.”
The AG further stated that: “The failure of the accounting officer to take appropriate actions to address the material irregularity led to a decision by the AGSA’s Material Irregularity Committee, duly delegated, to approve reporting in the audit report of the municipality on the material irregularity with recommendations, as provided for in Section 20(4) of the PAA, read with Regulation 4(3) of the MI regulations on the steps the accounting officer should take to address the material irregularity within a stipulated period in the audit report.”
MEC Buthelezi is aware of the grave nature of the issues raised by the AG, which were emphasized during a meeting with the AG on July 23, 2025.
MEC Buthelezi holds the AG’s office in the highest regard and is committed to acting in the interest of the residents of the uMkhanyakude District.
These residents bear the brunt of failed service delivery due to a lack of governance, financial, and consequence management measures within the District.
The AG has requested a formal report from the MEC by August 15.
The MEC will abide by the AG’s request and comply with the deadline given.
The MEC acknowledges the seriousness of the Auditor-General’s findings and the need for immediate and effective intervention.
Ends