City refutes claims of underspending and reaffirms strong financial performance
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Date: 2025-07-14 19:40:18

City refutes claims of underspending and reaffirms strong financial performance

ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
14 JULY 2025
 
CITY REFUTES CLAIMS OF UNDERSPENDING AND REAFFIRMS STRONG FINANCIAL PERFORMANCE
 
EThekwini Municipality strongly refutes recent claims of gross underspending and administrative incompetence. 
 
These assertions are not only misleading but also disregard the Municipality’s consistent record of sound financial management and effective service delivery.
 
*Strong financial standing recognised nationally*
 
Under the administrative leadership of City Manager Musa Mbhele, eThekwini continues to be recognised as the top-performing metro in South Africa in terms of financial management. 
 
This is further evidenced by National Treasury’s allocation of an additional R293 million to the City for the 2024/25 financial year, a clear vote of confidence in the Municipality’s grant management and service delivery capabilities.
 
*Capital Budget and Grant Expenditure Performance*
 
Contrary to claims of underperformance, the City has demonstrated exceptional expenditure rates across key service delivery sectors. 
 
As of the 2024/25 financial year, capital budget spending stands at 88%, amounting to over R7 billion.
 
Expenditure highlights include:
• Housing: 99.27%
• Water: 107.83%
• Sanitation: 83.20%
• Solid Waste: 76.35%
• Engineering: 94.60%
• Electricity: 97.25%
• Transport: 70.67%
• Metro Police: 67.98%
 
In terms of grant funding, the City has consistently achieved near or above 100% expenditure on major grants over the past five years. 
 
For the 2024/25 financial year:
• Urban Settlements Development Grant (USDG): 106%
• Social Housing Grant: 99%
• Housing Hostel Refurbishments Grant: 140%
• Electricity Grant: 116%
• Transport Grant: 207%
• Water Grant: 92%
• Sanitation Grant: 95%
• Engineering Grant: 77%
 
*Commitment to accountability and service delivery*
 
The City Administration has implemented robust oversight mechanisms, including special Executive Management Committee sessions and extended directorate engagements, to ensure that all projects are delivered on time and within budget. 
 
These efforts reflect a deep commitment to transparency, accountability, and the well-being of residents.
 
“We urge all stakeholders to engage constructively and not undermine the significant progress being made in the City. We remain committed to prudent, efficient, and transparent financial management and, more importantly, to the people of eThekwini who rely on quality infrastructure and reliable services,” said Mbhele.
 
*Addressing delays in invoice processing*
 
The City acknowledges that delays in the processing of invoices have at times, impacted the timely disbursement of payments to service providers. 
 
These delays are being addressed through a comprehensive review of internal financial workflows, the introduction of timeous tracking systems, and the strengthening of inter-departmental coordination. 
 
The City is committed to ensuring that all legitimate invoices are processed promptly and that service providers are paid within agreed timelines.
 
*City stands firm on flood relief progress and rejects misleading claims*
 
Mbhele said the actions of reporting the Bayside Hotel evictions of the flood victims to the Human Rights Commission and the Public Protector is an exercise in futility and desperate political grandstanding because the matter relating to the dignified resettlement of flood victims has been sufficiently dealt with by all spheres of government.
 
MEC for Transport and Human Settlement Siboniso Duma last week outlined the following:
 
●Delays caused by processes around obtaining approvals to avoid audit findings and irregular expenditure by the Auditor-General resulted in the unfortunate eviction of flood victims from the hotel.
 
● MEC Duma flew out to Gauteng to meet with the National Minister of Human Settlements Thembi Simelane to resolve the eviction of victims of floods from Bayside Hotel due to delayed payments.
 
●Government has already paid R185 million to hotels and self-catering accommodation for flood victims.
 
● KZN Human Settlements have met with Human Rights Commission last week and presented this matter.
 
●Government could have built houses for some victims in identified state owned land such as in Shallcross and other areas but communities there chased away contractors who were starting to build.
 
● Resistance from some communities to resettlements of flood victims on government-owned land next to their properties, under what is called ‘Not in My Backyard’ syndrome must be eradicated.
 
●The reality is that government cannot rebuild on unsuitable land that saw homes being washed away during floods.
 
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate.