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.