15-05-2025
AGSA report reveals mismanagement in KwaZulu-Natal infrastructure projects
The KwaZulu-Natal Legislature in Pietermaritzburg, where the Auditor General of South Africa (AGSA) presented its findings on contractors appointed to key infrastructure projects in KwaZulu-Natal that were not qualified or capable of performing the required work leading to substandard quality and cost overruns.
Image: Shan Pillay
The Auditor General of South Africa (AGSA) found contractors appointed to key infrastructure projects in KwaZulu-Natal were not qualified or capable of performing the required work, leading to substandard quality and cost overruns.
The AGSA found that the KwaNqetho Reservoir in the eThekwini municipality, a critical water infrastructure project, was delayed because of mismanagement. In addition, the material used around the reservoir platform indicated poor backfilling compaction, particularly on the steep slope of the reservoir.
Nomalungelo Mkhize, AGSA Business Unit Leader in KZN, presented the local government audit outcomes of the Municipal Financial Management Act (MFMA) to the KZN Legislature-Standing Committee on Public Accounts (SCOPA) and the Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) on Tuesday.
The AGSA looked at 15 infrastructure projects in the eThekwini, Msunduzi, uMhlathuze, KwaDukuza, Okhahlamba and uMkhanyakude municipalities. The AGSA said there were five new projects and 10 projects where they did follow-ups on the prior year findings and continued auditing the project as part of its life cycle.
The AGSA also audited existing infrastructure which they identified in different stages of a project life cycle including wastewater treatment works, solid waste, landfill sites and roads.
The AGSA found that the Mkhizwana Water Treatment Works project in eThekwini was delayed by 221 days due to gross negligence in the preparation of designs and drawings. Also, the Nondabuya Water Supply Scheme in the Umkhanyakude was delayed with only 726 of 1,811 households being connected to the reticulation system. The AGSA found that installation was in a worse condition compared to the previous audit.
Other infrastructure delivery weaknesses include the Austerville Substation south of Durban, which was intended to supply increased and stable electricity to industrial, commercial and residential customers. The project has been in the planning phase for 15 years.
The AGSA stated that this project faced significant delays due to project mismanagement, planning inefficiencies, contractor-related issues and financial mismanagement. The AGSA said that the civil works portion of the Austerville project was originally planned to be completed by 18 August 2021. However, due to multiple stoppages, the project was delayed, ultimately leading to the termination of the contractor on 25 January 2023 with only 63.97% of the work completed.
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The Namibia Stop 8 Housing Project in eThekwini, aimed at delivering 343 housing units, remains behind schedule with only 29 units completed as of September 2024.
The AGSA raised concerns regarding project oversight, resource allocation, and contractor accountability. Its' report stated that causes of delays were due to poor quality cost overruns and service interruptions, largely due to inadequate project planning and needs assessment.
The AGSA found that many of the projects suffered from inadequate needs assessment and project planning.
It found numerous cases, where the contractors were appointed were not qualified or capable of performing the required work to meet the agreed upon standards.
This included delays in meeting milestones and failed to adhere to contract specifications leading to substandard quality and cost overruns.
