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Treasury report paints dire picture of KZN municipal finances

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Sihle Mavuso

A 37-page report by the KwaZulu-Natal Provincial Treasury has painted a grim picture of the finances of the province’s 54 municipalities, including eThekwini Metro.

The report shows that 20 municipalities have been flagged as meeting the criteria for “serious financial problems”, with uMuziwabantu Local Municipality listed first, followed by Ugu District Municipality.

Also on the list are Mpofana, Msunduzi, uThukela, eNdumeni, uMzinyathi, Newcastle, eMadlangeni, Dannhauser, Amajuba, eDumbe, AbaQulusi, Nongoma, Ulundi, Zululand, Jozini, Inkosi uMtubatuba, uMkhanyakude, and Mthonjaneni.

However, the Treasury report cautions that the figures are based on unaudited municipal data, and that reporting errors, unreliable data strings, mSCOA problems and financial-system weaknesses remain a concern in some municipalities.

It said some municipalities initially appeared to meet the criteria for serious financial problems, but were later found not to be financially distressed after further scrutiny.

The report found that the listed municipalities were struggling to meet their financial

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