Buffalo City Metropolitan Municipality — governing East London (Ebuhlanti), King William's Town, Bhisho, and Mdantsane — recorded R1.71 billion in irregular expenditure in the 2022-23 financial year according to the Auditor-General. The irregular spending represents a systemic breakdown in procurement controls, contract management, and financial oversight.
The irregular expenditure was spread across multiple departments and categories: infrastructure contracts awarded without competitive bidding, payments made for work not performed, deviations from supply chain management policy that lacked proper justification, and contracts extended beyond their original scope without approval. The cumulative effect was that over R1.7 billion in public funds was spent outside the legal framework designed to ensure value for money and prevent corruption.
On the ground, the financial chaos translated directly into service delivery failure. Water supply was intermittent in large parts of the metro. Sewage systems overflowed in multiple areas. Roads deteriorated without maintenance budgets. Mdantsane — one of the largest townships in the country — experienced some of the worst service delivery, with residents routinely going days without water.
Despite the scale of the irregular expenditure, no municipal officials faced criminal prosecution. Internal disciplinary processes were either not initiated or stalled. The consequence-free environment emboldened continued financial recklessness.