eThekwini pushes back as Macpherson halts EPWP funding over corruption claims:
The eThekwini Metro municipality has pushed back against Public Works and Infrastructure Minister Dean Macpherson’s decision to withhold Expanded Public Works Programme (EPWP) grant funding for the 2026/27 financial year — amid allegations of jobs for sex and cash — insisting it has implemented comprehensive remedial measures.
This follows a material irregularity flagged by the Auditor-General of South Africa (AGSA) in 2021/22 that prompted Macpherson’s decision, which was announced on Tuesday.
eThekwini Metro said it “has noted recent public comments made by the minister” and remained “committed to upholding the integrity of the EPWP and to ensuring that the programme continues to benefit communities in a responsible, transparent and accountable manner”.
It said that when the AGSA informed it of the irregularities relating to EPWP payments, the metro “immediately implemented a series of remedial actions to address the matter and to prevent any recurrence”.
Those included an investigation into and assessment of the irregularity, recovery of losses where applicable, disciplinary and/or legal action against implicated officials and strengthening of internal control systems and verification processes.
“Ethekwini remains resolute in strengthening governance, reinforcing accountability and safeguarding public funds,” it said.
The metro said it “continues to cooperate fully with the AGSA and has been submitting regular progress reports on the implementation of the remedial action plan, in line with legislative requirements”.
Macpherson announced the funding hold at a briefing in Durban on Tuesday, attended by KwaZulu-Natal MEC for Public Works and Infrastructure Martin Meyer and EPWP deputy director-general Carmen-Joy Abrahams.
He gave the municipality 30 days to pass a council resolution endorsing a full investigation, detailed remedial action plan with timeframes, quantification of losses, recovery of funds and consequence management.
“The irregularity relates to payments made for services not rendered in contravention of Section 65(2)(a) of the Municipal Finance Management Act,” Macpherson said.
“This means that the municipality was unable to provide verifiable records, including attendance registers and supporting documentation to demonstrate that work was actually performed by the individuals who were paid.”
The minister said the AG’s findings indicated the database included “ghost beneficiaries,
deceased beneficiaries, beneficiaries employed elsewhere in government and beneficiaries with no valid identity numbers”.
The AGSA notified the accounting officer of the irregularity on 13 December 2022. The issues resulted in a material financial loss of R3.28 million by 31 October 2022, with a likely further loss of R2.34m for payments to ineligible beneficiaries employed elsewhere in the state.
The metro said its city integrity and investigations directorate (CIID) concluded its probe into payments to deceased participants and those concurrently employed in government departments and state-owned entities in October 2025.
The CIID recommended disciplinary action against six employees, recovery processes, timely termination of beneficiaries, centralisation of the EPWP payment function, reporting of criminal cases and termination of deceased participants and “double dippers”.
“Disciplinary proceedings were instituted in accordance with Section 62(1)(e) of the
MFMA and the Municipal Regulations on Financial Misconduct Procedures and
Criminal Proceedings,” the metro said.
It said disciplinary proceedings against five employees were under way and “all relevant documentation and supporting evidence” had been submitted to the AGSA.
To address root causes, the city said it had centralised the EPWP payment function, enhanced recruitment and verification procedures, strengthened payroll controls and
improved monitoring.
“Strict verification controls now apply to EPWP payment processing. Changes to banking details require in?person identity verification, written requests, supervisory approval and the maintenance of a formal register of amendments,” the metro said.
Monthly time and attendance records were verified and authorised by supervisors, reconciled with payroll records and supported by compliance checklists and declarations to maintain a clear audit trail, it said.
Regular cross?checks were also undertaken against the department of public works database to identify participants employed elsewhere in government.
“Monthly internal reviews are conducted to verify days worked, pay rates and leave records and to identify any duplicate or irregular payments. Where discrepancies are detected, formal recovery processes are initiated,” it said.
Potential criminal matters have been reported to the police, with three cases of alleged violation of Section 32(6) of the MFMA under investigation.
Meyer noted during the media briefing that 18 whistleblowers had come forward with complaints about corruption in EPWP allocations, including allegations of jobs for sex and demands for payment or political affiliation.
He described sex for jobs as “a form of sexual abuse and a form of rape” requiring criminal charges.
Macpherson said the EPWP was too important to be captured by corruption and warned that similar action could follow in other municipalities.
South Africa’s wastewater treatment system is in a deep crisis, with nearly half of all plants assessed classified as critically non-compliant — a failure that is contaminating rivers, dams and drinking water sources across the country.
This is the stark warning from the latest Green Drop findings, described by the Water Institute of Southern Africa (Wisa) as a “diagnostic of a national essential service in critical condition” rather than just a technical audit.
Of the 848 wastewater treatment plants assessed nationwide, 396 are in a critical state, while only about a quarter are performing at a standard that meets regulatory requirements.
“That’s not a statistic to skim past,” said Lester Goldman, its chief executive. “It means that right now, across communities from Limpopo to the Western Cape, poorly treated or untreated sewage is finding its way into rivers, dams and the water sources that millions of people depend on for drinking, for farming, for survival.”
For too long, Goldman said, wastewater treatment plants had been treated as invisible infrastructure, the “big toilets” of the country that attracted attention only when they overflowed.
“When nearly half of our plants fail to meet basic standards, that invisibility becomes dangerous.”
The crisis is often attributed to ageing infrastructure and constrained municipal budgets. While both are real pressures, they are not the root cause.
Goldman pointed to a deeper structural breakdown: a fragmented governance system shaped by procurement delays, under-costed tariffs and financial models that do not reflect the true cost of maintaining wastewater infrastructure.
Municipalities, he said, were being squeezed from multiple directions but the underlying problem was also one of institutional focus and accountability.
Compounding the crisis was a widespread misunderstanding of regulatory requirements.
Many municipalities, Goldman said, were operating as though outdated compliance frameworks were sufficient, when in fact, current regulations required measurable performance outcomes and functional service delivery.
“The gap between where many municipalities think the bar is and where it actually sits is, in itself, a governance failure,” he said. “We cannot manage what we do not accurately measure and we cannot fix what we refuse to hold to modern standards.”
The regulatory disconnect has allowed underperformance to persist without consequence, even as environmental and public health risks escalate.
Despite systemic failures, Wisa said the human capacity to fix the system existed.
Across the country, skilled engineers, scientists and process controllers continued to operate plants under increasingly difficult conditions, often without adequate resources or institutional support.
The disconnect between skill and support was one of the most damaging aspects of the crisis, he said.
As one process controller in Limpopo said: “We know how to run these plants. We keep improving. But without support, we can’t apply what we know. And when superiors don’t even show up to roadshows, you have to ask: Why wouldn’t they want better water, better staff, better communities?”
Goldman said that when leadership was absent, even the most skilled professional became a “spectator to a slow-motion disaster”.
Wisa positioned itself as a technical and professional body, not an operator or regulator. Its role, Goldman said, was to set standards, certify skills and strengthen the professional pipeline that kept the sector functioning.
But it cannot compensate for governance failures. “We don’t operate plants and we don’t have the legislative power to sanction municipalities,” Goldman added. “What we can do is ensure there is a competent, ethical and empowered workforce ready to deliver when the system allows it.”
However, he cautioned that professionalisation alone cannot reverse systemic decline without parallel reforms in funding, enforcement and municipal governance.
Reversing the deterioration of South Africa’s wastewater system will require simultaneous action across three fronts.
First, enforced accountability, with real consequences for municipal leadership failures rather than procedural compliance. Second, financial realism, including tariff and funding structures that reflect the true cost of maintaining functioning wastewater systems.
And third, institutional support, ensuring technical staff have the authority and resources needed to translate expertise into effective service delivery.
Cleaner rivers, safer drinking water, improved public health outcomes and more resilient ecosystems remain achievable, but only if institutional systems align with technical capacity, according to Goldman.
“At Wisa, we remain committed to professional excellence and to the practitioners who deliver it every day,” he added. “Now we need the rest of the system to meet us there.”
South Africa’s investment drive is rebuilding the economy:
South Africa is stepping confidently onto the global investment stage. Over the past few years, the country has not only set ambitious investment targets but has also exceeded them, securing more than R1.5 trillion in commitments across sectors ranging from energy and telecommunications to advanced manufacturing and infrastructure.
The 2026 South Africa Investment Conference alone confirmed nearly R890 billion in new projects, poised to create more than 230 000 permanent jobs across all nine provinces. Inspired by this success, the 2026 Gauteng Investment Conference (GIC), held on 9 April in Johannesburg, surpassed its R200 billion target by securing between R205.6 billion and R206 billion in new investment pledges. This brings the two-year cumulative total to R518 billion, advancing the province’s R800 billion ambition over three years.
These figures tell the story of a nation that is steadily moving from promise to action. Detractors who persistently dismissed President Cyril Ramaphosa’s investment conferences as little more than empty and expensive talk shops, with no real prospect of delivering meaningful economic impact, are now not only eating humble pie but also scrambling for a place to hide.
In an era when cynicism too often dominates public discourse and doubt easily overshadows progress, the facts speak volumes. South Africa is attracting capital, rebuilding confidence and laying the foundations for a new era of industrialisation, energy security and inclusive growth.
At the centre of this progress is the South Africa Investment Conference process, which has become a strategic platform for economic transformation and a powerful signal to the world that South Africa remains a strategic investment destination, rich in opportunities and determined to succeed on the global stage. More importantly, it proves that when leadership is focused, institutions are aligned and policy direction is clear, capital responds.
In the green economy, the energy and resources cluster alone accounts for 19 projects worth R55.6 billion across seven provinces, backed by investors from seven countries. In information and communications technology (ICT), the digital economy and financial services, 41 projects worth R23.6 billion will reach every province, deepening digital inclusion and strengthening the foundations of a modern economy. Tourism, property and infrastructure contribute R2.43 billion across KwaZulu-Natal and Mpumalanga, while agro-processing, food and agriculture add R7.3 billion. Automotive and advanced manufacturing account for R12.5 billion, with transport, logistics, aerospace and defence contributing a further R11.6 billion.
This diversification is crucial because the investment drive is not dependent on one sector, one commodity or one geography. Instead, it reflects a more balanced and resilient growth model capable of broadening participation across provinces and deepening value chains across the economy.
The strength of this approach is even clearer in the landmark commitments already on the table. Sasol’s R60 billion investment in upgrading plants in Mpumalanga and the Free State is a major vote of confidence in South Africa’s industrial base and energy-linked manufacturing capacity. It reinforces the country’s role as a key industrial hub while supporting the transition to more efficient and future-ready operations.
Valterra Platinum’s major commitment in Limpopo, including new mining shafts, a smelter and expanded operations, strengthens South Africa’s position in the critical minerals value chain just as the global energy transition drives demand for strategic resources.
Cornubia 957’s R25 billion investment and MTN’s R21.8 billion commitment further underscore the importance of property development, connectivity and digital infrastructure as building blocks of the next phase of growth.
The energy transition, in particular, is beginning to take visible and practical form. Mulilo’s R14.8 billion investment commitment in four renewable energy projects spanning the Free State, North West and Western Cape demonstrates that South Africa’s energy transition has moved well beyond rhetoric. It is now being actively financed, built and accelerated.
Actom’s R250 million investment in grid expansion equipment in Gauteng and the Western Cape reinforces that generation alone is not enough. Transmission and distribution are equally essential.
The automotive sector is also being repositioned for the future. Toyota’s R10.4 billion investment in KwaZulu-Natal signals South Africa’s determination to remain globally relevant in next-generation manufacturing.
Equally telling is the role of international confidence. South32’s R3.9 billion investment in rail upgrades and Teleperformance’s R145 million investment, creating 2 600 jobs, show that South Africa continues to attract both domestic champions and international firms that recognise strategic value in the market, the people and the country’s long-term potential. The once-persistent talk of an investment strike is finally fading into the background and receding from the national discourse.
Importantly, this investment momentum has not emerged in a policy vacuum. It is the result of deliberate reforms that have begun to remove the barriers that once held back investment. Through Operation Vulindlela, the government has advanced a structural reform programme that is simplifying regulation, improving labour mobility and opening key sectors to greater private participation. The unbundling of Eskom and the move towards a more competitive electricity market, for example, have already helped attract more than R200 billion in renewable energy investment, adding over 6 000 megawatts of capacity.
Clearer frameworks in water, infrastructure and logistics, coupled with visa reforms aimed at attracting scarce and skilled professionals, have sent a strong and credible message that South Africa is an ideal investment destination, open to innovation and global partnership.
These reforms are increasingly evident in growing investor and business confidence. South Africa’s business confidence index climbed to a decade-high of 47 points in early 2026, while consecutive quarters of economic growth, stabilising inflation and an improved sovereign credit outlook have reinforced the view that the country is on a steadier, upward trajectory. Leading global companies, including Coca-Cola, are committing billions in long-term investment, validating South Africa’s re-emergence as a strategic investment destination.
South Africa is also asserting itself more confidently on the global stage. By hosting the first African G20 summit, the country has placed itself at the centre of international dialogue and decision-making, showcasing not only its diplomatic standing but also its potential as a long-term economic partner in a rapidly changing world. Investment does not flow only to countries with resources. It flows to countries with credibility, strategic relevance and a clear sense of policy direction.
There is another dimension to this story. Ramaphosa’s investment approach is not built on private capital alone; it is an ecosystem strategy. The public sector and development finance institutions are playing a catalytic role in ways that are both substantial and strategic. Major infrastructure-related commitments include R3.35 trillion over three years, linked to government infrastructure announcements, transport reforms, energy sector reforms, Industrial Development Corporation (IDC) participation and the Infrastructure Fund. In addition, the broader development finance and international partnership ecosystem — including institutions such as the African Development Bank, the New Development Bank, AfriEximbank, the IDC and black industrialist support initiatives — contributes to the wider total of R474.8 billion.
This is what makes the investment drive especially compelling. It combines state reform, development finance, international partnerships and private sector confidence into a coordinated framework for growth. It recognises that no country industrialises, modernises and transitions its energy base through isolated interventions. It requires policy coherence, institutional coordination and, above all, leadership.
President Ramaphosa’s administration has faced enormous headwinds, including the aftershocks of a pandemic, prolonged energy disruptions, logistics bottlenecks, weak global demand, domestic political contestation and inherited structural damage. Yet despite these formidable odds, the investment drive has remained consistent, disciplined and forward-looking.
Yes, investment announcements and commitments alone are not enough. The true test lies in execution. South Africa must now convert commitments into cranes on skylines, machinery on factory floors, electrons on the grid, trains on the rails, exports through ports and jobs in communities.
Of course, more distance still needs to be covered and many challenges remain. But progress should not be dismissed because the journey is incomplete, nor should achievement be belittled because challenges persist. Resilient economies are not built in a single conference but through sustained effort. The foundations have been laid, capital is arriving and the sectors of the future are taking shape.
Cornelius Monama is a communication specialist who is part of the Government Communication and Information System (GCIS).
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