By Celani Sikhakhane
- RASP Consultants CC attached uThukela District Municipality’s bank accounts after the municipality missed payments on a 24-month debt repayment plan.
- CoGTA Minister Velenkosini Hlabisa and the KZN Cabinet visited uThukela to fix service delivery problems caused by the financial crisis.
A Pietermaritzburg court has ordered RASP Consultants CC to return R82-million it seized from uThukela District Municipality. The funds must be back in the municipality’s accounts within 48 hours.
The Pietermaritzburg High Court ruled on 9 March 2026 in favour of the municipality. RASP had attached uThukela’s bank accounts after the municipality missed portions of a court-sanctioned 24-month debt payment plan.
uThukela owed RASP more than R100-million for water plant maintenance work done in 2021/2022. RASP project manager Roshan Sewpersad initiated the attachment after the municipality fell behind on payments.
The R82-million seizure caused a severe financial crisis. uThukela was forced to use the Uthukela Development Agency’s accounts to keep paying staff. The crisis paralysed operations and disrupted service delivery across the district, raising concerns about the welfare of municipal workers.
Both the provincial and national Cooperative Governance and Traditional Affairs (CoGTA) departments stepped in.
CoGTA Minister Velenkosini Hlabisa and KZN Premier Thami Ntuli visited uThukela along with the KZN Cabinet. They met with municipal leadership, organised labour and other stakeholders to find ways to unblock service delivery.
At the meeting, delegates were told the court had ordered the frozen funds to be released so the municipality could fulfil its mandate. Discussions also focused on a road map for financial recovery, stronger accountability and long-term institutional stability.
Service providers have repeatedly accused KZN municipalities of not paying them on time. This has caused many small businesses to collapse while waiting for their money, as they are unable to keep their operations running.
Pictured above: CoGTA Minister Velenkosini Hlabisa and KZN Premier Thami Ntuli during the oversight visit at uThukela District Municipality.
Image source: KZN Office of the Premier
