Minister of Public Works and Infrastructure Dean Macpherson announced sweeping reforms to the EPWP, including new recruitment guidelines aimed at preventing abuse, while confirming funding suspensions, lifestyle audits, and allegations of political gatekeeping under investigation.
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Public Works and Infrastructure Minister Dean Macpherson says a ghost employee audit has uncovered about 60 individuals who were allegedly paid salaries without being legitimate employees, with most of the cases identified in KwaZulu-Natal.
Macpherson was speaking during a media briefing on Wednesday ahead of his Budget Vote in the National Council of Provinces (NCOP), where he said the department was undertaking updates on seven key matters as part of what he described as its dual responsibility of improving internal systems while strengthening delivery.
He said the reform programme underway in the department was “irreversible”.
“We are taking the public into our confidence about the work we are doing to investigate wrongdoing, strengthen accountability, protect public money, and ensure that the Department of Public Works & Infrastructure works for all South Africans,” Macpherson said.
He added that the department could not ignore systemic failures.
“We cannot build a capable department on top of broken systems,” he said.
Macpherson said investigations were being conducted across several areas, including leasing failures, procurement, employment fraud, EPWP abuse, and major infrastructure-related corruption probes.
On the ghost employee audit, he said, “The department is finalising this audit to determine the full extent of irregular payments and to identify those responsible.”
He added that disciplinary, civil, and criminal action would follow where wrongdoing is confirmed.
Macpherson confirmed that investigations were ongoing across multiple areas, including an expanded forensic probe into the PSA oxygen plant tender following a request from Health Minister Dr Aaron Motsoaledi.
“The extended investigation is focused on allegations of serious maladministration, fraud, and corruption relating to the rollout of oxygen plant infrastructure.”
He added that preliminary findings pointed to:
“Non-compliance with procurement processes, deficiencies in oversight and accountability, and weaknesses in governance and record-keeping.”
Macpherson said three officials had been initially identified, although the number could change as investigations continue, and confirmed the probe is expected to be completed by the end of June.
Turning to public employment, Macpherson announced major reforms to the Expanded Public Works Programme (EPWP), including revised recruitment guidelines aimed at improving transparency and preventing abuse.
“EPWP must be a programme that gives people a fair opportunity to work, earn, and build their skills. It must never be used as a tool for patronage, control, or abuse.”
Macpherson said departmental listening tours had revealed serious allegations of manipulation within recruitment systems.
“The money allocated to EPWP does not belong to any officials, politicians, networks, or gatekeepers,” he warned.
“When controls fail, it’s the unemployed who suffer the most.”
Macpherson confirmed that three officials had resigned after refusing to submit to lifestyle audits, adding that accountability measures would continue.
He also confirmed that EPWP funding to eThekwini Municipality had been withheld following Auditor-General findings relating to ghost beneficiaries and irregular payments, with another metro also under investigation.
On infrastructure entities, Macpherson said the Independent Development Trust (IDT) was undergoing a turnaround, with its order book increasing by R2 billion to R6 billion in confirmed projects and strong improvements in cash flow from near-bankruptcy levels.
“The IDT has completed 279 social infrastructure projects in the 2025/26 financial year, exceeding its target of 244.”
Macpherson also announced that Infrastructure South Africa will open Bid Window III on 27 July 2026, backed by a R600 million allocation for project preparation support.
He said government would also release the third iteration of the Construction Book and announce priority infrastructure projects for the next financial year.
On the Telkom Towers matter, Macpherson said the forensic report into the project, which involved R1.4 billion in expenditure and an estimated R776 million loss, was found to be inadequate.
“The report failed to provide clear evidence-based recommendations required for consequence management.”
Macpherson said the department’s broader reform agenda was aimed at strengthening oversight and repositioning Public Works as an “economic delivery unit”.
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