eThekwini Municipality faces backlash over R874.9 million budget reallocation

eThekwini councillors expressed concern about the reprioritisation of the R874.9 million budget at a council meeting on Thursday. 

The municipality stated that it was reprioritising the budget from savings and projected unspent funds from delayed capital projects because of procurement processes still under way, and certain challenges encountered on site for those projects already being implemented.

Councillors expressed concern that the 2025/26 Medium Term Revenue and Expenditure Framework was approved in May 2025, with only 8.82% of the capital budget spent by the end of September 2025.

The municipality stated it remains committed to achieving 100% of the budget.

The eThekwini Executive Management conducted a review of quarter one to assess the progress being made to conclude procurement processes of all planned capital projects and the current spending of the budget. 

The outcome of the review indicated that some of the projects are progressing, while some are being delayed due to procurement processes that have not yet concluded.

The municipality was aware that the National Treasury consistently raised concerns regarding the underspending patterns recorded during the first three quarters of each financial year. 

It said that it was aware that failure to spend the allocated budget may result in the reduction of future budgets and grant allocations.

Some of the key projects to be prioritised include:

• Storm-related projects to address challenges of sewer systems;
• Alternative sanitation programme;
• Procurement of smart meters for both water and electricity;
• Fleet replacement within the Cleansing and Solid Waste Directorate;
• Refurbishment of the Moses Mabhida Stadium; 
• Road rehabilitation and addressing issues related to the billing system. 

Reprioritisation of savings/project unspent funds: 

• R314 million - Water and Sanitation 
• R23 million - Cleaning and Solid Waste
• R226 million - Electricity 
• R122 million - Community and Emergency Services
• R62 million - Engineering
• R60 million - Human Settlements
• R16 million - Economic Development and Planning
• R5 million - Finance
• R45 million - Office of the City Manager 

Andre Beetge, DA eThekwini councillor, said the reprioritisation has caused many projects to be curtailed, including the development of indigent software and the purchasing of equipment for the fire and emergency services.

He said that roads in certain wards will remain gravel instead of being tarred.  

“If there is no consequence management, we will continue with this trajectory,” he said. 

Nkosenhle Madlala, ANC councillor, said the money taken away from projects is not lost.

“At the end of the day, what is promised to the people will be delivered. As the ANC, we have asked the city manager and chief financial officer they streamline the supply chain management issues so we don't have this problem recurring,” he said. 

zainul.dawood@inl.co.za