The Department of Public Works and Infrastructure has placed a hold on Expanded Public Works Programme allocations destined for eThekwini Municipality, citing serious concerns over fraudulent payroll practices and financial irregularities. Minister Dean MacPherson confirmed the suspension, emphasizing that conditional grants cannot be disbursed when safeguards against misuse are absent.
Investigations revealed that numerous individuals were reportedly collecting wages under the EPWP without performing legitimate work. Minister MacPherson disclosed that funds had been disbursed to deceased beneficiaries and to municipal staff already receiving salaries—a practice commonly referred to as “double-dipping.” These findings align with Auditor General reports spanning four years, which repeatedly flagged inadequate financial controls and missing audit trails in the municipality’s management of national grants. During this same period, the number of verified EPWP participants in the area dropped significantly.
Upon reviewing these reports, Minister MacPherson formally requested answers from eThekwini’s mayor and city manager. He warned that failure to implement corrective actions would necessitate withholding further funding. “We cannot lawfully transfer money when it is being used unlawfully,” he stated, referencing obligations under the Division of Revenue Act governing conditional grants.
Three municipal officials linked to the irregularities reportedly stepped down before facing lifestyle audits. Addressing whether resignation allows individuals to evade consequences, Minister MacPherson was unequivocal: accountability does not end with employment termination. He indicated that government pensions could be leveraged to recover losses and affirmed that legal action would proceed where evidence permits. As an illustrative case, he pointed to a questionable lease agreement for an unoccupied property potentially exposing the state to liabilities worth tens of millions of rands—underscoring the need to hold all levels of approval accountable.
Minister MacPherson acknowledged the EPWP’s vital role in poverty relief but lamented its exploitation by entrenched networks. Following consultations with roughly 4,500 applicants, consistent patterns of abuse emerged: candidates reportedly faced demands for political allegiance, cash payments, or sexual concessions. Opportunities, he noted, were frequently diverted to relatives, associates, or retained by local councillors.
To counter these systemic vulnerabilities, the department has initiated a comprehensive reform strategy built on direct access and digital transparency. A new platform enables applicants to register and engage with the programme without intermediary involvement, effectively bypassing potential gatekeepers. The approach also prioritizes skills development to help participants move beyond temporary work toward sustainable employment or entrepreneurship. Initial rollout occurred in KwaZulu-Natal, with Limpopo scheduled to follow before month-end.
Further strengthening these measures, updated EPWP recruitment guidelines—revised for the first time in more than ten years—will soon be published in the Government Gazette. These codified standards aim to prevent manipulation and reinforce accountability. Complementing this, a digitally enabled infrastructure initiative will directly match job seekers with verified opportunities, fostering greater trust in programme delivery.
Minister MacPherson stressed that the funding suspension is not intended as punishment but as a necessary compliance measure. “This is about building trust in the system,” he explained. He welcomed eThekwini’s recent commitment to adopt a council resolution that formally acknowledges the identified irregularities and establishes a remediation plan. Once ratified, the department stands ready to resume financial support.
Responding to concerns about legitimate workers facing payment delays, the Minister recognized the hardship involved but redirected focus toward systemic responsibility. “Spending money unlawfully is equally catastrophic,” he remarked. He questioned why municipal implementers continued to disregard Auditor General directives for four years, thereby jeopardizing both public funds and beneficiary livelihoods. While withholding grants remains a final recourse, Minister MacPherson affirmed his department’s willingness to collaborate—provided there is genuine commitment to reform and lawful administration.