eThekwini Municipality addresses ghost employee issue in EPWP programme
The eThekwini Municipality stated that the controversy over financial losses around the Expanded Public Works Programme (EPWP) was historical and that corrective measures have been put in place.
Public Works and Infrastructure Minister Dean Macpherson stated in April 2026 that he would stop EPWP grant payments to the municipality until he received feedback on the programme.
Macpherson’s report highlighted irregularities, including payments for services not rendered, payments to deceased or ineligible beneficiaries, and instances where individuals allegedly received EPWP payments while employed by other government institutions.
A report submitted by the municipality identified R6.8 million in losses linked to irregularities.
In a report to the municipal council on Tuesday, the municipality stated that irregularities highlighted by the Auditor-General South Africa (AGSA) are historical, primarily relating to the 2020/2021 financial year.
“All beneficiaries identified during these periods as deceased, ghost participants, or ineligible beneficiaries, including those employed in other government institutions, have since been terminated from the programme,” the report stated.
The municipal report noted that in the current financial year, no cases of payments to deceased beneficiaries, ghost participants, or individuals employed by other organs of state were identified, thanks to enhanced verification processes and ongoing monitoring. The municipality stated that it has proactively implemented a range of corrective measures.
Macpherson said the controls introduced by the municipality would be important in preventing similar problems in the future.
Also on Tuesday, the council approved the extension of the current EPWP programme for six months, until December 2026.
The municipality stated that the extension, at a cost of R46 million, will ensure continuity and stability of the EPWP projects and services, while the process of engaging new beneficiaries is under way.
The municipality stated that it has separated the AGSA matter from the contract extension, as discontinuing EPWP services at this stage would negatively impact communities and place additional strain on already limited municipal resources.
The municipality is also expected to enter into a grant agreement with the DPWI regarding the 2026/2027 EPWP grant funding estimated at R7.4 million.
The EPWP plays a role in administration support (32 participants), the waste management directorate (440), area-based management (44), parks and recreation (92), the social sector (414 participants), community-based water agents (41), and Safer Cities (18).
DA Executive Committee (Exco) member, Councillor Andre Beetge, said the EPWP programme has been shrouded in controversy since its inception, with inadequate funding forcing municipalities and ratepayers to carry the bulk of the financial burden.
Beetge provided a timeline of the EPWP programme in eThekwini.
- In the 2020/21 Covid-strapped financial year, the national government contributed R79 million, while the city contributed R160.3 million, supporting 5,800 participants at an annual cost of R41,298 per participant.
- In 2021/22, the national grant increased marginally to R81.6 million; participants decreased to 4,800, while the city’s contribution rose to R179.3 million, resulting in a total programme cost of R261 million and an annual cost of R54,375 per participant.
- In 2022/23, the national funding declined to R61.2 million, a marginal drop in participants to 4,538, yet the city increased its contribution to R201.2 million, with the annual cost rising to R57,844 per participant.
- In 2023/24, the national funding dropped again to R60.7 million, while the city’s contribution increased further to R216.7 million. There were 4,257 participants at an annual cost of R65,494 each.
- In 2024/25, the national funding collapsed to just R18.7 million, while the city’s contribution stood at R92.1 million. Participant numbers dropped dramatically to 989, yet the annual cost per participant almost doubled to R112,149.
- In 2025/26, the national allocation reduced even further to R8.5 million, while the city still contributed R91.2 million. Participant numbers increased slightly to 1,082 from the previous year, with an annual cost of R92,144 per participant.
Beetge said that over these six years, the national government contributed R257.8 million, while the ratepayers of eThekwini contributed R724.1 million.
He was concerned that two-thirds of the programme had been funded by residents and businesses of the city.
