Public works and infrastructure minister Dean Macpherson has determined that Matjhabeng Local Municipality properly used Expanded Public Works Programme (EPWP) funds for 2023/24 and 2024/25 on approved projects.
Macpherson has directed that withheld EPWP funds be released so projects can continue, while stressing that the municipality must account for its decision to establish the support unit.
He released the findings of the department’s investigation into allegations that the EPWP in Matjhabeng was used to fund inflated salaries for former councillors and sitting political office bearers.
This is after he suspended EPWP transfers to the municipality pending an investigation in July after a City Press investigation found that salaries exceeding R31,000 a month were paid to these officials, more than ten times the average EPWP stipend.
“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. As the department of public works & infrastructure, we will continue to ensure good governance and accountability,” Macpherson said.
He said the officials highlighted in media reports are not EPWP participants and are not paid from the EPWP integrated grant.
While these officials’ salaries are significantly higher than the EPWP stipend, their contracts are municipal appointments linked to the executive mayor’s term and fall outside the EPWP framework.
Macpherson said the investigation established that all EPWP integrated grant allocations for the 2023/24 and 2024/25 financial years were fully spent on approved projects, creating 373 and 751 work opportunities, respectively.
“Expenditure patterns reported by the municipality correlated with proof of payment to participants,” he said.
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 we work to reform the EPWP programme towards becoming more transparent, a skills-transfer and a hand-up to permanent employment, the integrity of the programme is paramount. 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. Through this action, we are building a better department which will help us build a better South Africa,” he said.
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