The Minister of Cooperative Governance and Traditional Affairs, Mr. Velenkosini Hlabisa, together with the Premier of KwaZulu-Natal, Mr. Thamsanqa Ntuli, today led an oversight engagement with the uThukela District Municipality in Emnambithi/Ladysmith.

Also in attendance were the District Development Model (DDM) Champion and Deputy Minister of Transport, Mr. Mkhuleko Hlengwa; the KwaZulu-Natal MEC for Cooperative Governance and Traditional Affairs, Mr. Thulasizwe Buthelezi; and the MEC for Economic Development, Tourism and Environmental Affairs, Mr. Musa Zondi. The engagement brought together leadership from across the three spheres of government, business, organised labour, and civil society. Their presence underscored the importance of collaborative leadership and the strategic potential of the district.

The uThukela District Municipality, led by Executive Mayor Cllr Ntandoyenkosi Shabalala, is one of the eleven district municipalities in KwaZulu-Natal. The district comprises three local municipalities: Alfred Duma, Inkosi Langalibalele, and Okhahlamba. This engagement forms part of a series of interventions aimed at addressing the persistent challenges facing the district, particularly those affecting service delivery in rural communities, including access to reliable water services.

During the meeting, stakeholders reflected on the key indicators of a well-functioning municipality, including:

– Addressing legal challenges facing the municipality

– Ensuring reliable and sustainable service delivery

– Strengthening financial management and fiscal discipline

– Promoting good governance and ethical leadership

– Encouraging active public participation

– Ensuring institutional stability

The discussions followed presentations by the Northern KwaZulu-Natal Chamber of Business and the municipality on the state of governance and service delivery within the district. Both presentations painted a concerning picture, highlighting governance and financial management challenges that have significantly undermined service delivery.

The situation has been further exacerbated by the attachment of the municipality’s bank accounts, which has negatively affected its ability to meet financial obligations, including the payment of service providers and municipal employees. Minister Hlabisa emphasised that the municipality’s inability to fulfil its constitutional mandate has negatively affected investor confidence in the district, thereby discouraging investment and limiting economic growth opportunities.

It was within this context that the Northern KwaZulu-Natal Chamber of Business requested an urgent engagement with the Minister to explore possible interventions aimed at stabilising the municipality and restoring functionality. The Minister noted that the challenges facing the municipality have far-reaching consequences, affecting not only the district but also the broader provincial and national economic environment.

Stakeholders expressed a shared commitment to restoring a well-functioning municipality that consistently delivers essential services, manages public resources responsibly, and builds public trust through transparent, ethical and accountable governance. Communities across the district continue to demand the reliable provision of basic services, including water, sanitation, electricity, refuse removal, and the maintenance of public infrastructure such as roads and public spaces.

Business representatives pledged their support to collaborate with the municipality in restoring service delivery in critical areas. They emphasised that the municipality has a responsibility to restore the dignity of communities through effective service delivery, including ensuring reliable water supply and addressing sewage spillages. The business sector also expressed concern about previous interventions that had failed to produce lasting results and called for a new, results-oriented approach to governance and service delivery.

The MEC for Economic Development, Tourism and Environmental Affairs emphasised the importance of developing secondary towns such as Ladysmith as part of efforts to correct the uneven distribution of economic opportunities across the province. He further highlighted the need to create an enabling environment that attracts investors and supports sustainable economic growth. The District Development Model Champion committed to supporting the municipality through coordinated stakeholder engagement, particularly in strengthening infrastructure investment. Organised labour emphasised the need to protect workers and raised concerns regarding delayed salary payments in municipalities across the province. Labour organisations also called for a credible and actionable turnaround strategy to stabilise the municipality and ensure accountability for governance failures.

Both Minister Hlabisa and Premier Ntuli pointed to the importance of fostering a culture of accountability within municipal institutions. This includes ensuring that municipal officials are responsive to community needs, transparent in decision-making processes, and committed to upholding high ethical standards. Premier Ntuli reaffirmed the provincial government’s commitment to supporting the municipality in achieving its developmental objectives. He highlighted the need to address infrastructure vandalism, which continues to undermine service delivery and development efforts. The Premier further called for collective action from all stakeholders, stating:
“Let us join hands and work together to turn around the municipality.”

Minister Hlabisa highlighted the importance of building a professional, skilled and stable municipal administration with minimal vacancy rates in critical positions, supported by functional council structures. “We want a well-functioning municipality where communities experience the positive impact of improved service delivery, better living conditions, and meaningful participation in the development of their communities,” said Minister Hlabisa.

Programme of Action

At the conclusion of the engagement, Minister Hlabisa outlined the following programme of action:

– The Minister expressed appreciation to all stakeholders, including government, business, organised labour, and civil society, for their constructive participation. He further announced that the court has reversed the earlier decision to attach the municipality’s bank accounts, thereby enabling the municipality to resume payments for outstanding services and employee salaries.

– The Minister emphasised that effective consequence management must be implemented to ensure accountability for failures in governance and service delivery.

– The Municipal Manager will convene a stakeholder engagement forum to address key issues affecting the municipality and identify sustainable solutions.

– Within the next three months, the municipality will host a uThukela Investment Summit aimed at positioning the district as an attractive destination for investment and economic development.

– The district will receive priority attention within the work of the National Water Crisis Committee to address water supply challenges and critical infrastructure gaps.

– Strengthened communication and coordination between the three spheres of government will be prioritised to ensure timely resolution of service delivery challenges.

– The repair of water leaks and other urgent infrastructure challenges will be prioritised, with clear turnaround times for response and resolution.

– The Minister welcomed the implementation of standby allowances for technical officials to ensure that infrastructure faults are addressed promptly.

– Overtime expenditure of approximately R4 million was deemed unsustainable and will be reviewed to ensure responsible financial management. The municipality will explore alternative water sources, including the drilling of boreholes, to improve access to water for communities.

– Within 21 days, the municipality must submit a comprehensive report on vandalised infrastructure, particularly infrastructure that serves traditional communities under Amakhosi.

– The position of Chief Financial Officer (CFO) must be filled urgently with a suitably qualified and competent individual.

– The municipality must adopt a funded and credible budget and discontinue reliance on unfunded budgeting practices.

– Non-essential expenditure must be removed from the municipal budget to ensure financial sustainability.

The primary objective remains the stabilisation of the municipality to ensure effective and efficient governance and service delivery. Within 21 days, the Minister, the Premier, and the District Development Model Champion will return to uThukela to assess progress on the agreed programme of action.

The engagement concluded with a shared commitment from all stakeholders to work collaboratively to restore stability and improve service delivery in the district.

Minister Hlabisa emphasised that the agreed programme of action will be closely monitored to ensure that it delivers tangible improvements in the lives of communities. “Our communities must not continue to suffer due to governance failures. We have a responsibility to work together and deliver the services that our people deserve,” concluded Minister Hlabisa.

ENDS

For further information, please contact:

Ms Pearl Maseko-Binqose
Media Liaison Officer to the Minister of CoGTA
082 772 1709

Mr Legadima Leso
Head of Communication – CoGTA
066 479 9904

ISSUED BY THE MINISTRY OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS