The Department of Public Works and Infrastructure has suspended Expanded Public Works Programme (EPWP) funding for the eThekwini Municipality following allegations of ghost employees, irregular salary payments, and systemic financial mismanagement. Minister Dean MacPherson confirmed the decision, stating that funds cannot be transferred when there is evidence of misuse and that the municipality must first identify and rectify the irregularities.
An audit into EPWP implementation uncovered dozens of individuals allegedly receiving salaries without legitimately working under the programme. According to Minister MacPherson, payments were made to deceased persons and to individuals already employed by the municipality. The Auditor General has raised concerns about the municipality’s lack of financial controls and audit trails for the past four years, noting a sharp decline in the number of genuine beneficiaries receiving EPWP support during that period.
“When that report came to my attention, I wrote to the municipality, particularly the mayor and the city manager, and said that we need to get answers to this,” Minister MacPherson stated. “Should we fail to get those answers and should the municipality fail to put corrective measures in place, we would be forced to withhold that funding.”
Three officials implicated in the scheme reportedly resigned rather than undergo lifestyle audits. Minister MacPherson emphasized that resignation does not shield individuals from accountability. “Where wrongdoing has been identified, government pensions should be used to settle those issues,” he said, adding that the department will pursue irregularities through the courts regardless of an official’s employment status. He cited a separate case involving a lease for a vacant building potentially costing taxpayers tens of millions of rands as an example of why accountability must extend through the entire chain of command.
Minister MacPherson described the EPWP as a programme with noble intentions that has been “manipulated and used for nefarious purposes at the expense of those who desperately need this poverty alleviation scheme.” Following engagements with approximately 4,500 applicants, consistent reports emerged of individuals being asked about political party affiliation, solicited for money, or pressured for sexual favors in exchange for opportunities. Positions were frequently allocated to friends, family, or retained by ward councillors themselves.
In response, the department has launched an irreversible reform agenda centered on transparency and direct access. Applicants will now engage with the programme digitally, bypassing intermediaries such as ward councillors. The reforms also aim to transition participants from short-term poverty alleviation to long-term employment through skills development. The first phase of this initiative has been launched in KwaZulu-Natal, with a second phase scheduled for Limpopo later this month.
Additionally, revised EPWP recruitment guidelines will be gazetted for the first time in over a decade to codify safeguards against manipulation. A new infrastructure programme will utilize digital technology to connect applicants directly with opportunities, enhancing transparency and rebuilding public trust.
Regarding the withheld funds, Minister MacPherson clarified that the action is not punitive but a necessary step to ensure compliance with the Division of Revenue Act, which prohibits the transfer of conditional grants when stipulated conditions are unmet. “We cannot transfer money where there are huge questions and problems like ghost workers and payments to people who are employed already,” he explained.
The minister expressed optimism that the matter can be resolved, noting that the municipality has committed to passing a council resolution that identifies the problems and outlines a corrective pathway. Once adopted, funding disbursement can resume.
Addressing concerns about the impact on legitimate EPWP participants, Minister MacPherson acknowledged the vulnerability of workers but stressed that continuing unlawful expenditure is equally catastrophic. “The question should really be posed to the implementers: Why are you putting people in jeopardy by ignoring directions from the Auditor General for four years?” he said. While withholding funds is a last resort, he maintained that the department remains committed to engagement and support, but cannot lawfully participate in or enable the misuse of public resources.