KwaZulu-Natal’s Provincial Treasury has raised concerns over deteriorating financial practices in municipalities, revealing alarming levels of wasteful expenditure and calling for urgent reforms to restore accountability.
KwaZulu-Natal’s Provincial Treasury has raised alarm over deteriorating financial management practices in municipalities across the province, following the release of the National Treasury’s latest Municipal Finance Management Act (MFMA) compliance report.
The report, titled Strengthening Municipal Financial Management – MFMA Compliance 2024/25, revealed escalating levels of unauthorised, irregular, fruitless and wasteful expenditure nationally, now standing at a staggering R268.13 billion.
KZN, alongside the Eastern Cape, was singled out as one of the provinces facing heightened fiscal risks, with concerns mounting over unsustainable spending patterns and weak governance systems within municipalities.
Among the major concerns flagged was overtime expenditure exceeding R316 million, which Treasury warned was placing additional pressure on already strained municipal budgets.
