Top-Performing KZN Municipality Held Back by Power Theft, Perverse Funding Rules, and Audit Gaps – Mayor Pappas

HOWICK, KwaZulu-Natal – The uMngeni Local Municipality may be KwaZulu-Natal’s top performer in service delivery, but according to Executive Mayor Christopher Pappas, it is fighting a hidden war against crumbling infrastructure, rampant electricity theft, and a national funding system that punishes good governance.

In a candid interview, Pappas celebrated the provincial recognition while pulling back the curtain on what he calls “systemic limits” preventing a clean audit: weak contractor oversight, a ballooning debtors book, and a questionable contract extension that cost an official their job.

Why a Clean Audit Remains Out of Reach

Despite securing an unqualified audit with findings—one step short of clean—Pappas said the municipality is deliberately sequencing its turnaround.

“The main thing that stopped us was internal controls around contractor performance management,” he explained. “Our primary focus was making sure performance management around officials was robust. The next step is the same systems for contractors.”

Electricity Losses: A Cultural Crisis

The most material finding remains electricity losses, with theft accounting for roughly 34% of supply—more than one-third. For Pappas, the root cause is as much cultural as technical.

“You can change as many meters as you want. But if people don’t believe electricity is something they have to pay for, you’re fighting your own people,” he said.

On a positive note, all three political parties in council have stopped politicising the issue. But a deeper, more frustrating obstacle remains: national funding rules that reward defaulting.

“We’ve gone to Treasury, to COGTA, to the Department of Electricity. Most entities told us the municipality will only get assistance if we default on our Eskom account. We are up to date. The only way to get help to fix this is to default.”

Despite this, progress is visible. Since installing 1,000 prepaid meters, uMngeni has seen monthly revenue jump by roughly R550,000—an annual gain of about R6 million. Pappas noted that metered areas also show lower consumption as residents become more conscious of usage.

A Substation Stalled by Land Rights and Eskom

The uMthinzima substation in Mpophomeni sits at only 47.4% completion against a 60% target. Pappas blamed delays on land rights disputes—including one involving a person arrested for murder—and Eskom’s failure to connect, despite deposits paid over three years ago.

“Our work is at practical completion. Eskom needs to connect,” he said.

Roads: Marked Improvement, but Gaps Remain

On infrastructure, Pappas was measured: main roads are now 95–100% drivable, secondary feeder roads 75–80%, and roughly 25–30% of smaller suburban roads still need attention—excluding gravel roads requiring full conversion. The roads budget has grown from R11 million to R42 million, the municipality’s highest-ever allocation.

The R1 Million Contract Error: Accountability in Action

The Auditor General also flagged a contract extension or modification worth nearly R1 million that was not properly publicly advertised. Pappas clarified it involved extending internal audit services while recruiting a new chief audit executive.

“No money went missing. We did not advertise the extension properly. But even when no money is lost, accountability still applies,” he said.

The audit manager involved “is no longer in the employ of the municipality” after a disciplinary process, though Pappas noted the individual left before finalisation.

He used the example to highlight a systemic flaw in local government: “If R100,000 goes missing through irregular expenditure, a municipality can spend R600,000 trying to recover it from an official who has now left. Once officials face disciplinary action, they often leave.”

Who Holds the Final Line?

Pappas placed ultimate responsibility for a clean audit squarely on the municipal manager and directors.

“If it’s supply chain, it’s the CFO. If it’s infrastructure, it’s the director for technical services. We’ve seen CFOs leave for underperformance. Where we found criminality in the R300 million irregular expenditure backlog we inherited, we have opened criminal cases.”

When asked what residents should expect if the municipality fails to achieve a clean audit in the next cycle, he was blunt:

“The accounting officer and directors need to take accountability, and we must implement consequences as we have been doing.”

 

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