DA opposes funding of projects with expired contracts

Issued by Councillor Zamani Khuzwayo – DA eThekwini Councillor
31 Jan 2025 in Press Statements

The Democratic Alliance (DA) today rejected the proposal for the reprioritisation of funds within the eThekwini Municipality’s 2024/2025 Capital Budget, particularly the R40 million allocation under the Informal Settlements Upgrading Grant (ISUPG).

This decision follows revelations that one of the proposed allocations – R5.4 million for the Namibia Stop 8 Housing Development Project – pertains to a project with an expired contract, which lapsed on 18 December 2024.

The DA deems it unacceptable to allocate funds to a project that no longer holds a valid contract, as it risks financial mismanagement and overpayment. This position is in line with concerns raised by the Auditor-General, who has repeatedly pointed out issues of financial mismanagement and poor oversight in eThekwini Municipality’s handling of public funds. The DA is committed to ensuring that taxpayers’ money is used efficiently and responsibly and will not support any allocation that could contribute to these ongoing problems.

Furthermore, the DA believes that funds should be redirected to address critical infrastructure needs. Specifically, urgent road repairs are needed in areas such as eMatikwe, Lindelani, Clermont, and Sydenham, where the condition of the roads continues to worsen. The DA calls for the reprioritisation of budget funds to ensure the immediate maintenance and repair of these vital roads.

The DA will continue to support any reprioritisation that directly benefits the residents of eThekwini, particularly the poorest and most vulnerable communities, who rely on these funds for basic services and improved living conditions.

It is imperative that every rand of the municipality’s budget is spent wisely and effectively. The DA will hold the administration accountable for any attempts to divert funds from essential service delivery into expired or mismanaged projects.