With the embattled eThekwini Municipality leadership enduring intense grilling from MPs during a recent appearance before the standing committee on public accounts (Scopa), analysts say the ANC faces a difficult road ahead in the local government elections in November.
The eThekwini municipal council’s 222 seats are governed through a coalition, with the ANC — short of an outright majority — relying on support from the Economic Freedom Fighters (EFF) and the National Freedom Party.
The municipality has come under scrutiny over audit outcomes, alleged corruption and escalating irregular expenditure.
During an appearance before Scopa earlier this month, executive mayor Cyril Xaba, city manager Musa Mbhele and chief financial officer Dr Sandile Mnguni fielded tough questions about R6.4 billion in irregular expenditure accumulated over two financial years, controversial contracts, administrative failures and unread water and electricity meters that contributed to a 53% non-revenue water loss.
Pressure on Mnguni has also intensified after allegations raised in an EFF election campaign poster calling for him to step down. The poster alleged that Mnguni hired his wife, who serves on the municipality’s bid evaluation committee while he chairs the committee.
“The legal department continues to litigate against contractors and refuses to pay, despite the Auditor-General’s findings that contractors must be paid within 30 days,” the poster read.
“This is why corruption, irregular expenditure and service delivery failure continue, while officials protect their own and the city manager looks the other way. Heads must roll,” it said.
Responding to a question from EFF MP Mazwi Blose during the Scopa hearing, Mnguni confirmed that his wife served on the bid evaluation committee, which recommends tenders to the accounting authority.
Xaba, Mbhele and other municipal officials defended the city’s procurement compliance and financial management systems, saying corrective measures were being implemented.
Answering Democratic Alliance MP Farhat Essack on the auditor-general’s repeated findings of non-compliance, Mbhele conceded that progress had been inadequate.
“The statement by the auditor-general is correct in a sense that it does reflect an unsatisfactory progress in dealing with some of the findings that they have raised,” Mbhele said.
“We are doing consequence management for those people who are not complying. So we are doing all the best we can to ensure that we … [turn] the situation around.”
Mnguni attributed a significant portion of the irregular expenditure to non-compliance with local content regulations under the 2017 Preferential Procurement Policy Framework Act regulations. “As a result of that, those were found to be in breach of the 2017 regulations,” he said.
Local government expert Dr Harlan Cloete said the ANC “will face an uphill battle in the
coming elections”.
“The party is set to be weakened by [the] opposition vote, including the MK [uMkhonto weSizwe Party], EFF and now the SACP going it alone. I don’t think the ANC will get an outright majority in that council.
“The electorate must brace itself for another coalition government, hopefully strengthened by the passing of the Coalition Bill,” Cloete said.
On Mnguni, Cloete said that if the allegations were proven true, “then we are dealing with
a case of a complete flouting of basic governance principles and a conflict of interest”.
“If the CFO appoints his wife, it’s completely out of order and it is just against all sound and good governance principles, sending a clear message to the electorate that the governing coalition is not interested in clean governance,” he added.
Municipal head of communications Mandla Nsele said eThekwini would respond to the Mail & Guardian’s questions this week.
Political analyst Zakhele Ndlovu said eThekwini had long escaped the level of scrutiny directed at municipalities such as Ekurhuleni.
“Since the Manase Report was shelved many years ago, there have been rumours and allegations of corruption by city officials,” he said.
“The infrastructure in the eThekwini CBD is decaying, [there are] potholes and vagrants galore. Officials are not enforcing by-laws, with the ANC-led eThekwini government performing dismally.”
The 2012 Manase Report implicated senior municipal officials and politicians in alleged fraud, corruption and financial irregularities estimated at R2.2bn. Among its findings were allegations that councillors benefited from doing business with the municipality and supply chain management regulations had been abused.
“The CFO saga is the nail in the coffin,” Ndlovu added. “The ANC is synonymous with corruption and greedy leaders, something which is definitely going to hurt the party ahead of the November elections.”
The ANC faces mounting political pressure in eThekwini after municipal leaders were grilled by Parliament’s Scopa over R6.4 billion in irregular expenditure, governance failures and corruption allegations. Analysts warn the fallout could weaken the party before the local government elections in November
