Portfolio Committee chairperson Zweli Mkhize has requested answers from the iLembe District Municipality over allegations of questionable spending linked to renovations on a privately owned warehouse and payments for an allegedly unused building.

• The iLembe District Municipality is accused of irregular spending of about R14.7 million on offices and renovations.
• Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs has ordered a full response by 11 May.
• Allegations include defective water tankers, ICT irregularities, and possible payment for undelivered goods.

The iLembe District Municipality in KwaZulu-Natal has been hit by allegations of questionable spending totalling at least R14.7 million, centred on a controversial deal to renovate a privately owned warehouse using public funds.

The allegations, now before Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs, include claims that the municipality spent R11.7 million on renovations to a private property and an additional R3 million on rentals for a building that was allegedly never used.

In a formal letter signed by committee chairperson Dr Zweli Mkhize, the municipality was informed that a member of the public had requested a parliamentary investigation into numerous claims of governance failures, maladministration, and possible fraud.

Mkhize has given the municipality until Monday to provide a comprehensive response.

Private property deal

At the heart of the scandal is the municipality’s decision to lease alternative office space from a private property company. According to a submission to Parliament seen by News24, the municipality allegedly bypassed normal procurement processes to secure the lease.

The whistleblower claimed that the municipality confirmed the appointment of Mabalengwe Engineers PTY (LTD) on 3 March 2026 to undertake a “turnkey project”. The contract, valued at R11 734 248, was intended to modify a private warehouse into municipal offices.

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The whistleblower in the matter stated that using municipal funds to repurpose a building not owned by the state raised serious legal concerns.

They noted that the lease period was limited and the cost of renovations might eventually exceed the total rental costs, potentially constituting irregular expenditure and financial misconduct.

Furthermore, the municipality is alleged to have paid R3 016 619 in rental costs while the building sat empty. These payments reportedly continued despite the building being uninhabitable due to delays in structural modifications.

An internal email dated 11 October 2025 indicated that the Auditor-General of South Africa had already disputed the procurement deviation, stating the circumstances did not meet the “emergency” threshold required to bypass standard bidding procedures.

Health risks and defective tankers

The investigation has also cast a spotlight on the municipality’s service delivery.

A whistleblower alleged irregularities in the procurement of 30 tankers intended to distribute drinking water to communities in KwaDukuza, Mandeni, Ndwedwe, and Maphumulo.

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The submission claimed that dirt and debris were entering the tanks, creating a serious public health hazard. There are also concerns that the newly supplied tankers required refurbishment almost immediately after delivery, raising questions about their fitness for purpose.

It is alleged that supply chain officials certified delivery notes and confirmed the tankers met specifications, allowing for full payment to the supplier, despite evidence that the vehicles were defective.

ICT and asset governance

The municipality’s information and communication technology (ICT) systems have also come under fire. Claims include the use of an unregistered ICT system for more than a year, and payments made for laptops that were reportedly never delivered.

The committee heard that the municipality also failed to record certain assets in its register or ensure they were insured.

In its correspondence, the committee indicated that the allegations were serious enough to warrant a formal explanation. The municipality was approached for comment, and their response will be added once received.