Media statement: KwaDukuza Mayor outlines implementation of Section 106 report following labour court challenges

In line with a resolution of the KwaDukuza Municipal Council, KwaDukuza Mayor Siduduzo Gumede wishes to inform members of the public on the latest developments emanating from the findings and recommendations of a forensic investigation that was conducted in terms of Section 106 of the Local Government: Municipal Systems Act, which relates to court proceedings instituted by the Municipal Manager, the Executive Director for Corporate Services, and the Executive Director for Civil Engineering who were placed on precautionary suspension by the municipal council on 13 February 2026.

"Following the completion of the forensic investigation initiated by the KZN MEC for Corporate Governance and Traditional Affairs, report was brought before the Municipal Council in-committee. The report details a number of findings concerning governance, administrative and financial management practices within the Municipality. These findings included weaknesses in certain internal control systems, procurement and contract management processes, aspects of project implementation and oversight, and issues relating to the safeguarding of municipal resources.

The report further made a range of recommendations aimed at addressing these issues, including the strengthening of governance and internal control systems, the implementation of corrective administrative measures, and the institution of disciplinary processes in respect of three senior officials. The report also made recommendations relating to certain councillors, which will be addressed through the applicable statutory processes governing councillors. In addition, the report recommended that the Municipality consider further steps such as civil recovery and other remedial measures where warranted.

Council considered its findings and recommendations, coupled with an Action Plan as part of ensuring that corrective and governance measures are implemented, placing three Senior Managers on precautionary suspension pending disciplinary processes.

The Action Plan provides for a range of measures, including strengthening governance and internal control systems, improving financial oversight and administrative processes, implementing corrective management interventions, and instituting disciplinary processes where appropriate.

The Municipality emphasises that the implementation of the Action Plan is not only at addressing individual accountability, but at strengthening institutional systems and governance processes to ensure that similar instances do not arise in the future.
 
The suspensions do not constitute findings of guilt but implemented to allow the necessary investigations and disciplinary proceedings to continue in an orderly and unhindered manner.

A section 106 investigation is a statutory investigation initiated by the Member of the Executive Council (MEC) for Cooperative Governance in terms of the Municipal Systems Act when there are allegations of maladministration, fraud, corruption or serious governance failures within a municipality. The purpose of such an investigation is to examine the allegations, determine whether misconduct or irregularities have occurred, and make findings and recommendations on the appropriate corrective steps to be taken.

Following the implementation of the suspensions, all three Senior Managers approached the Labour Court on an urgent basis in an attempt to challenge the decision of council.

The first urgent application brought by the Senior Managers was struck from the roll due to defects in the Senior Managers’ papers filed with the Court.

A second urgent application, brought shortly thereafter on substantially similar grounds by the Senior Managers, was also dismissed with costs by the Labour Court for lack of urgency. The Court further ordered the Senior Managers to pay the Municipality’s costs.

In the course of delivering the ruling in the second matter, the presiding Judge remarked that, even if the matter had been entertained as urgent, the application would likely not have succeeded on the merits. As the matter was dismissed with costs  for lack of urgency, the Court did not make any formal determination on the merits.

The disciplinary processes relating to the officials concerned will now proceed in accordance with the applicable legislative and regulatory framework governing Senior Managers in local government.

KwaDukuza Local Municipality respects the right of any employee to approach the courts. At the same time, the Municipality remains committed to ensuring accountability, good governance and the proper management of municipal resources", said Gumede.

The Municipality will provide further updates at the appropriate time.

Ends

Issued by the Office of the Mayor of KwaDukuza Municipality