Minister of Public Works and Infrastructure Dean Macpherson
Public Works and Infrastructure Minister Dean Macpherson has introduced that his division will withhold Expanded Public Works Programme (EPWP) funding to eThekwini Metropolitan municipality following an alleged jobs for intercourse, kinfolk, political associates and money scandal that has led to funds being made to people who didn’t qualify as beneficiaries.
Macpherson’s choice, introduced at a briefing in Durban on Tuesday, follows materials irregularities flagged by the Auditor-Normal of South Africa (AGSA) within the municipality’s administration of the programme in 2021/2022.
KwaZulu-Natal MEC for Public Works and Infrastructure Martin Meyer and deputy director-general for the EPWP, Carmen-Pleasure Abrahams, have been current on the briefing.
The AG report, which was republished within the eThekwini’s draft annual report launched for public remark in January, detailed funds made on the EPWP to people who didn’t qualify as beneficiaries, together with fictitious “ghost” beneficiaries, deceased beneficiaries and beneficiaries employed in different state establishments.
It additionally famous funds made with out ample supporting paperwork or proof that duties have been carried out, in non-compliance with the Municipal Finance Administration Act (MFMA).
The non-compliance resulted in a cloth monetary lack of R3.28 million by 31 October 2022, with a probable additional lack of R2.34 million for funds to ineligible beneficiaries employed elsewhere within the state.
In line with the report, the accounting officer was notified of the fabric irregularity on 13 December 2022 and supplied responses, together with progress studies, however the auditor-general assessed that satisfactory progress had not been made in implementing suggestions by an prolonged deadline.
These included a full investigation into root causes and doable monetary misconduct beneath the MFMA, restoration of losses, implementation of efficient expenditure controls, disciplinary motion towards officers and reporting to the police the place prison acts are suspected.
Macpherson stated his choice to chop EPWP grant funding to the metro for 2026/7 till it investigates the matter and takes corrective motion, was not taken frivolously.
He stated the choice was prompted after he obtained correspondence from the AGSA relating to the fabric irregularity recognized within the municipality’s administration of the grant courting again to 2021/2022.
“The irregularity pertains to funds made for providers not rendered in contravention of Part 65 of the Municipal Finance Administration Act.
“Which means that the municipality was unable to offer verifiable information, together with attendance registers and supporting documentation to show that work was really carried out by the people who have been paid,” he stated.
“The AG’s findings point out that the municipality’s database included each beneficiaries, deceased beneficiaries, beneficiaries employed elsewhere in authorities and beneficiaries with no legitimate id numbers.”
The matter was critical as a result of funds meant to assist poor and unemployed individuals by way of work alternatives had been diverted elsewhere. “For many individuals, EPWP is the distinction between meals and no meals. It’s the distinction between a family making it by way of the month or not,” he stated.
“When EPWP is abused, it isn’t solely taxpayers who’re being robbed. It’s the poorest South Africans who’re being robbed. It’s the unemployed one that ought to have obtained a possibility, however didn’t,” stated Macpherson.
The minister has directed that eThekwini should, inside 30 days, cross a council decision endorsing a full investigation, an in depth remedial motion plan with timeframes and assist for disciplinary and, the place acceptable, prison proceedings. The municipality should additionally quantify the loss, determine improper beneficiaries, recuperate funds and institute consequence administration.
“We do not need the posh of trying away … That’s the reason I’ve directed to withhold EPWP fund transfers to eThekwini metropolitan municipality within the new 2026/27 monetary 12 months till the mandatory corrective motion has been taken,” he stated.
The metro bears duty for its expenditure controls, payroll, beneficiary administration and record-keeping, whereas the nationwide division acts to forestall additional publicity of funds, the minister stated.
In line with Meyer, to this point 18 whistle-blowers had come ahead with “credible and actionable” complaints about corruption concerned within the allocation of EPWP jobs within the metropolis.
“These sentiments are comparable in nature to the quite a few complaints that KZN Public Works and Infrastructure has been getting on its lately launched EPWP anti-fraud and whistleblower portal … the place complaints primarily relate to issues a few lack of transparency in recruitment processes, alleged political interference in recruitment and operational challenges inside sure municipalities,” he stated.
Meyer stated the matter had additionally emerged because the primary grievance throughout communities within the province. He stated some candidates had complained that they’d been requested to pay for jobs, whereas others have been requested for intercourse or to show their political affiliation in alternate for work.
Abrahams stated her division would assist the metro to implement processes and controls to handle the EPWP system.
“It is crucial when issues go fallacious that we take care of consequence administration,” she stated. “We recognise that the AG has engaged us as a associate in relation to this and we might be partaking with regard to the motivation grant as a result of that’s the device we’ve obtainable because the department.
“We’ll, if want be, interact nationwide treasury in regard to the allocation that will get given to the metro,” stated Abrahams.
“We wish eThekwini to deal with the audit challenges. We wish them to enhance on their coordination. We wish all of the sectors to be revived inside the metro… that work alternatives are created and that they take the technical assist provided by us and the province,” she stated.
Nonetheless, Meyer famous that whistleblowers had been reluctant to open prison circumstances. “Probably the most determined and the poor are being exploited. They have these jobs and are very afraid of dropping the revenue they’ve or being victimised by the individuals of their neighborhood.
“So whereas we all know for a truth intercourse for jobs exists and other people do report it, it’s very tough for us to take any actions,” he stated. “However let me be clear, intercourse for jobs is a type of sexual abuse and a type of rape and it wants prison expenses to be laid for individuals like that to finish up in orange uniforms and be a visitor of the federal government in Westville jail or others.”
Macpherson and his crew stated that regardless of the challenges, they purpose to depoliticise the programme because it stays an important device to offer significant work alternatives, worthwhile abilities and assist to struggling communities.
“The EPWP is simply too vital to be captured by corruption. It’s too vital to be weakened by poor controls. And it’s too vital to fail the individuals who rely upon it,” he stated.
Macpherson warned that the metro was not being singled out however that comparable motion would comply with if abuse is recognized in different municipalities.
Whistleblowers can report suspected corruption by way of a QR code on the KZN division’swebsite right here.
