The Newcastle Municipality has once again come under scrutiny following the release of the 2024/2025 findings by the Special Investigations Unit (SIU), presented during a recent Standing Committee on Public Accounts (SCOPA) briefing.
The report exposed a worrying trend — despite 15 disciplinary cases and 28 referrals to the National Prosecuting Authority (NPA), no decisive action has been taken to hold officials accountable.
During the briefing, it emerged that prosecutors declined to pursue three matters involving seven officials, including two municipal directors and one service provider. This raised questions about accountability at senior levels of the municipality.
Preliminary documentation shared after the session revealed that the NPA cited “evidential deficiencies” in two cases and a statute of limitations issue in the third. These explanations, however, have done little to ease growing concern about the province’s ability to prosecute complex corruption cases — with conviction rates for such matters dropping to 65% in 2024/2025, largely due to prosecutorial backlogs.
“Honourable Chair, I want to know the reasons that were put forward by the prosecutor in regard to declining to prosecute these three matters, because most of the crime matters come to these service providers and those senior officials sometimes. We want to know the reason because it says declined. It’s something else,”
stated a Cooperative Governance and Traditional Affairs (CoGTA) representative at the briefing.
Following the meeting, both the SIU and NPA are expected to submit detailed documentation explaining the lack of prosecutions. Observers have warned that if sufficient grounds for prosecution exist and no action follows, it could set a troubling precedent for governance and accountability across South Africa’s municipalities.
Furthermore, SCOPA members acknowledged that, as the legislature is separate from the Department of Justice, they cannot compel the NPA to act. However, they recommended that the matter be referred to the National Assembly or the National Council of Provinces (NCOP) — the bodies empowered to ensure appropriate action is taken.
They further stressed the need to identify systemic challenges and ensure all departments follow proper procedures to address the issue transparently and effectively.
Background: SIU’s investigation into Newcastle Municipality
The SIU was authorised by President Cyril Ramaphosa in July 2022 to investigate allegations of corruption and maladministration within Newcastle Municipality’s previous administration. The presidential proclamation called for the recovery of financial losses suffered by the state, placing urgency on the process.
The SIU’s probe centred on procurement irregularities during the COVID-19 national State of Disaster. In December 2022, Newcastillian News reported that the municipality had procured Personal Protective Equipment (PPE) at inflated prices exceeding National Treasury regulations.
Investigators examined 14 contracts valued at R2,387,230, identifying five service providers who had charged above approved rates. Three providers signed acknowledgements of debt (AoDs), agreeing to repay the excess in monthly instalments. Yet by May 2023, progress remained slow, with only part of the funds recovered.
By mid-2025, under the SIU’s broader Operation Khokhela — a national campaign aimed at recovering over R1 billion in municipal losses — Newcastle still ranked among the municipalities of concern. Roughly 60% of the R2.387 million had been recovered, while the remaining service providers faced civil litigation.
In early 2025, the SIU also submitted two new referrals relating to irregular contract extensions within the municipality’s infrastructure unit, adding another R1.2 million in potential recoverable losses.
On 31 May 2022, the SIU submitted five disciplinary referrals to Newcastle Municipality against officials implicated in procurement and contract awards. It also referred administrative action to the South African Health Products Regulatory Authority (SAHPRA) concerning suppliers not registered to distribute medical devices.
Ongoing concerns and calls for accountability
Despite these interventions, Newcastle Municipality continues to face serious challenges in dealing with past misconduct. While the SIU has succeeded in uncovering irregularities and recovering part of the funds, the slow pace of disciplinary and prosecutorial outcomes underscores the need for continued oversight.
Lawmakers have now urged that the National Assembly or NCOP ensure robust follow-up. They also called on the municipality to strengthen governance measures, improve internal disciplinary processes, and enhance whistleblower protections to rebuild public confidence in local administration.
Nevertheless, with the above in mind, what are your thoughts? Let us know below.
8 Responses
These culprits should be serving sentences by now
How does the government intend on assisting house holders on the exorbitant water and electricity rates in Newcastle.
Why are there so many availability charges on one’s account
Why should availability be paid every month when nothing is being done about the poor infrastructure and half the time there is no water or electricity
Let’s not even speak about sewerage issues in Newcastle whereby SHIT is flowing in CBD area and sewerage stink on parts of Newcastle where sewer tankers offload it in nearby streams or rivers closes to communites
POTHOLES another eye sore and danger
BUT YET OUR MUNICIPALITY HAS THE MONEY TO SPEND ON UNNECESSARY ROADSHOWS, SPONSOR HORSE RACING AND GETWAYS TO DRAKENSBERG
WASTEFUL EXPENDITURE
WHY US NO ONE ADDRESSING AND TALKING ABOUT THIS
They overcharge the residents to pay their fat salaries the municipality is over staffed there are so many people employed to do nothing why are they not cleaning the streets and cutting the grass on the pavements you only find them sitting under the trees and sleeping
There is so much that needs to be addressed in Newcastle. The municipality has violated the conditions of the electricity supply license. In 2019 we as Newcastle Residents Forum has called NERSA to intervene in that matter and the municipality was actually in contravention of the license conditions.
The rates have unnecessarily hiked up. But we still have a lot that is not in good conditions (streets have a lot of deep potholes, lickages , busts of lots of pipes. But there are always expensive events done but the municipality. I doubt if there is any element of service prioritisation.
The Public and Business In Newcastle KZN , should be made Known that they have voted for a Conflicted Governance. Ward councilor must be investigated by their parties of Failures in that Town we grew up in a beautiful City . Now Failed CBD runned by Drug and foreign nationals, in conjunction within face no oversights.
Newcastle Municipality, Law enforcement, Bylaws, are comprised by Construction Mafia within Working with conflicted officials and councilors go under da table, because Senoir Leadership, have no knowledge of what going on . Maybe Media should investigate public ,residents serious CBD be taken over by Foreingers Nationals in Allen, Voortrekker, Kirkland, Ayliff, Sutherland… streets Paradise Lennoxton are Drug ,illegal, crime daily . Last weekend RTI Newcastle operations was Headlines because Out of Town Law enforcement officials busted Newcastle. Local failed that Town.
The prosecutors can be paid not to prosecute as much as they can be paid to influence magistrates to convict.