• ACTis has raised four flags for KDM and placed two under monitoring.
• Systemic procurement irregularities and a high number of repeat contractors abandoning key infrastructure projects point to a possible network of public and private actors benefiting from irregular contracts at KDM.
• Disaster grant funding tends to amplify the risk of corruption, as officials may exploit emergency conditions to bypass competitive procurement processes. This risk is heightened when key municipal oversight and accountability structures are weakened. In connection with irregular contract awards and alleged transfers of stolen municipal funds to politically connected individuals, an emerging pattern suggests that public resources are being extracted to benefit a network of public and private actors.
• Senior administrative and political officials implicated in corruption remain in key positions, while oversight bodies have repeatedly raised concerns about a lack of consequence management. Recent interventions by the KZN Department of Cooperative Governance and Traditional Affairs (COGTA) and other bodies suggest increasing scrutiny and some movement towards accountability. However, the Municipality’s long-term resilience will depend on strengthening internal governance and oversight structures rather than relying on external interventions.
• Governance failures have impacted service delivery. Most of the disaster relief funds were wasted, with more than half the projects abandoned. These projects included repairs to bridges that many residents relied on.