Public Works and Infrastructure Minister Dean Macpherson has cleared the Matjhabeng Local Municipality of allegations that it misused Expanded Public Works Programme (EPWP) funds to pay inflated salaries to former councillors and current political office bearers.

This follows an investigation by the Department of Public Works and Infrastructure (DPWI) after media reports, sparked by a City Press exposé revealed that officials were receiving salaries of over R31,000 per month, more than ten times the standard EPWP stipend.

In response, Macpherson suspended EPWP transfers to the municipality in July and ordered an urgent probe.

Macpherson said a team of senior officials from the Department travelled to Matjhabeng to conduct an on-the-ground verification of expenditure and payments.

Their findings revealed that all EPWP Integrated Grant allocations for the 2023/24 and 2024/25 financial years were fully spent on approved projects, resulting in the creation of 373 and 751 work opportunities, respectively. The investigation confirmed that expenditure patterns matched proof of payment to legitimate EPWP participants, he said. 

The report also found that the individuals referenced in media reports were not EPWP participants, nor were they paid from national EPWP grants.

Instead, they were part of a municipal EPWP Support Unit, established in February 2024 and funded entirely from the Matjhabeng municipal budget. The unit is housed in the Mayor’s Office and its members are appointed under contracts linked to the Executive Mayor’s term.

While their salaries are significantly higher than the EPWP stipend, the investigation concluded that these appointments fall outside the EPWP framework, said Macpherson. 

Macpherson stated that, “While it may be considered unnecessary for such a unit, that is within the political decision-making realm of the mayor and not the minister to determine.”

”When I first learnt of the allegations, I moved speedily to ensure that public funds are protected and that an investigation be conducted as soon as possible. I therefore commend departmental officials for conducting the investigation within three weeks, which found that all EPWP funds transferred to Matjhabeng are accounted for, and that grant money was used strictly for its intended purpose — creating work opportunities for unemployed South Africans.”

With the national funds confirmed to be properly spent, Macpherson has ordered the release of all EPWP transfers withheld during the investigation so that projects in the municipality can continue without delay.

“As we work to reform the EPWP program towards becoming more transparent, a skills-transfer and a hand-up to permanent employment, the integrity of the program is paramount,” said  Macpherson.

“Where allegations arise, we will investigate these speedily and provide feedback to the public as we have done in this case. This will ensure that a culture of transparency is built within the programme to keep officials accountable for how funds are distributed.”

Macpherson said the municipality has to answer itself on the merits of establishing an EPWP support unit using funding from the municipality’s budget.

”As the Department of Public Works & Infrastructure, we will continue to ensure good governance and accountability,” Macpherson said.

hope.ntanzi@iol.co.za

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