SAgovnews
KZN Treasury allocates funds to strengthen governance, municipal support KwaZulu-Natal MEC for Finance, Francois Rodgers, has allocated R6.5 million to the Provincial Supply Chain Management (SCM) Unit within the provincial Treasury department to strengthen support for municipalities. In a statement issued on Tuesday, the department explained that the R6.5 million earmarked for the SCM Unit will fund targeted interventions aimed at addressing persistent weaknesses in municipal financial management, particularly the growing levels of Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE). UIFWE has increased from R13.478 billion in June 2024 to R15.712 billion in June 2025, with 10 municipalities accounting for R11.490 billion collectively. In addition, a further R6 million has been allocated to the Provincial Accountant-General’s Office to enhance its work with the Department of Education. The allocations form part of R17 million in savings realised within the MEC’s Ministry during the 2025/26 financial year. The move reflects the provincial government’s ongoing commitment to redirecting resources towards improving financial governance, fighting corruption, and enforcing compliance with the Municipal Finance Management Act (MFMA). Rodgers said the continued rise in irregular and wasteful expenditure is unacceptable and undermines service delivery. “Through these targeted interventions, we are strengthening oversight, closing governance gaps, and ensuring that municipalities comply fully with the MFMA,” Rodgers said. While eThekwini and uMsunduzi Municipalities are receiving support directly from National Treasury, focused assistance from the provincial Treasury will be provided to eight municipalities. The support will be given to the municipalities through the development and implementation of UIFWE reduction strategies, strengthening SCM governance and compliance, improving contract management, and building technical capacity among officials. The municipalities set to benefit 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. The MEC said the balance of the savings, amounting R4.5 million, will be allocated to the implementation of the Provincial Financial Recovery Plan. These interventions build on Rodgers’ reform-driven approach, including his decision in the 2024/25 financial year to reinvest savings from the department into the development of a digital procurement system aimed at reducing opportunities for fraud and corruption within supply chain processes. – SAnews.gov.za GabiK Tue, 06/09/2026 - 10:53 0
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