The eThekwini Metropolitan Municipality is set to lose its Expanded Public Works Programme (EPWP) funding after Public Works and Infrastructure Minister Dean Macpherson moved to halt allocations to the metro, following allegations of a “jobs-for-sex, relatives, political affiliates and cash” scheme, as well as claims of ghost workers on the programme.
Minister Macpherson confirmed that the funding freeze will only become effective in the new financial year if the municipality is unable or unwilling to pass a council resolution within the next 30 days. The resolution would require the metro to quantify the losses, explain how it will deal with the Auditor-General’s recommendations, and outline a plan to hold accountable those officials who have abused the programme.
“It would be unlawful for me to allow that money to proceed in the new financial year knowing what we know now from the Auditor-General and not do anything about it,” Macpherson said. “The ball is really in the court of the council and the leadership of the eThekwini municipality.”
The Minister stressed that the issues have persisted for four years, with the Auditor-General repeatedly attempting to get the municipality to correct its practices. He noted that flagged problems include ghost workers receiving grants, state employees benefiting from the programme, and individuals without ID numbers being paid.
“We cannot allow ghost workers to be receiving this grant. We cannot allow employees of the state to be receiving this grant. We cannot allow people who cannot even provide ID numbers to be receiving this grant,” Macpherson said. “It would be irresponsible for us to continue providing those funds when they are going to illegitimate individuals.”
When asked about potential claims that the decision is politically driven, Macpherson rejected the charge, stating: “It doesn’t matter which political party you come from or where you come from. The law is the law.”
The Minister added that his department has been engaging the municipality for some time without fruitful results, and that the council and councillors responsible for overseeing the administration must ultimately take charge.
While no ballpark figure for financial losses has yet been determined, Macpherson acknowledged that recordkeeping is so poor that even the Auditor-General struggles to quantify the losses. He announced that two large pilot projects to digitise the EPWP would be launched shortly, beginning on 4 May, to create a more direct interface with participants and stem existing risks.