EPWP funding to eThekwini halted over ‘jobs for sex’ and ghost beneficiaries scandal

Public Works and Infrastructure MinisterDean Macphersonhas announced that his department will withholdExpanded Public Works Programme(EPWP) funding toeThekwini Metropolitan municipalityfollowing an alleged jobs for sex, relatives, political affiliates and cash scandal that has led to payments being made to individuals who did not qualify as beneficiaries. KwaZulu-Natal MEC for Public Works and Infrastructure Martin Meyer and deputy director-general for the EPWP, Carmen-Joy Abrahams, were present at the briefing. The AG report, which was republished in the eThekwini’s draft annual report released for public comment in January, detailed payments made on the EPWP to individuals who did not qualify as beneficiaries, including fictitious “ghost” beneficiaries, deceased beneficiaries and beneficiaries employed in other state institutions.

It also noted payments made without sufficient supporting documents or proof that tasks were performed, in non-compliance with the Municipal Finance Management Act (MFMA). The non-compliance resulted in a material financial loss of R3.28 million by 31 October 2022, with a likely further loss of R2.34 million for payments to ineligible beneficiaries employed elsewhere in the state. According to the report, the accounting officer was notified of the material irregularity on 13 December 2022 and provided responses, including progress reports, but the auditor-general assessed that adequate progress had not been made in implementing recommendations by an extended deadline.

These included a full investigation into root causes and possible financial misconduct under the MFMA, recovery of losses, implementation of effective expenditure controls, disciplinary action against officials and reporting to the police where criminal acts are suspected. Macpherson said his decision to cut EPWP grant funding to the metro for 2026/7 until it investigates the matter and takes corrective action, was not taken lightly. “The irregularity relates to payments made for services not rendered in contravention of Section 65 of the Municipal Finance Management Act. “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,” he said.