The troubled Zululand District Municipality, based in Ulundi in northern KwaZulu-Natal, owes service providers R480-million, and this has been the case for almost a year.
The district municipality encompassing Ulundi, Pongola, Nongoma, eDumbe (Paulpietersburg) and Abaqulusi (Vryheid) local municipalities appears to be struggling to pay the service providers, some of whom are on the brink of collapse.
MPAC report
This is contained in an MPAC (Municipal Public Accounts Committee) report seen by Sunday World, dated July 30 2025.
The report raised concerns that the IFP (Inkatha Freedom Party) run municipality appears to be overspending while struggling to honour its debt obligations on time.
Municipalities and government departments are obliged to pay service providers within 30 days after a service has been rendered and a legitimate invoice has been submitted.
“It’s very concerning that our municipality is owing its debtors more than 480 million rands. This could subsequently lead to a financial distress. And the municipality might struggle to fulfil its service delivery obligation.
“It’s a call for a re-prioritisation on outsourced services. Use what we afford for betterment of the people and instil a culture of monitoring and accountability for both official and public representatives (sic),” reads the MPAC report.
Municipality downplays issue
The municipality said this amount represents the 2023/2024 Annual financial statement publicised and audited operating creditors.
“It is now being raised by MPAC in their oversight role. It is not representing cashflow problem. However, it is a concern if the amount increases. At this point after a year of operations, this is under control. Measures are in place – including payment arrangements with those suppliers. Therefore above 30 days with a consent of those affected,” the municipality said.
Meanwhile, the MPAC also raised concerns that employees of the municipality are not monitored during their working hours. As a result, they spend working hours running personal errands.
Staff unsupervised
“Lack of employees’ supervision at their respective workplace …eventually poses severe threats on the core functions of the municipality. Especially in technical department. It was witness[ed] during the recent MPAC oversight visits.
“It seems to be an order of the day that employees use employers’ time (work hours) attending their personal matters and neglecting assigned duties and responsibilities. Yet they’re getting paid a full salary at the end of every month. This tendency can’t go unchallenged anymore,” the committee said.
