R9.3 Billion in 14 months: Inside eThekwini's procurement machine

In the past 14 months, from January 2025 to February 2026, the eThekwini Municipality (Durban), spent over R9.3 billion on more than 710 contracts. This money went to things like fixing roads, building houses, buying fuel, and running software systems.

But a close look at the official reports shows some worrying patterns. A few big companies get most of the money, rules for fair bidding are often skipped, and one contractor keeps winning housing jobs. This article breaks it down in simple terms, based on public records from the municipality's Supply Chain Management unit.

The scale of public spending.

eThekwini Municipality released 14 monthly reports listing all the contracts they awarded. These add up to about R9.32 billion, but the real number is even higher. Many contracts are "rates-based," meaning they don't have a fixed price listed, they just say R0.00. The municipality doesn't always share the estimated costs for these.

Each month, the number of awards and their values changed. For example, in February 2026, they spent almost R1.93 billion, the highest month. That included a massive R1.47 billion deal for electrical switchgear. Other months had smaller amounts, like R152 million in December 2025. Overall, the money went to services across the city, from water pipes to IT systems and housing for the poor.

This spending shows how the municipality runs daily operations and big projects. But it also raises questions.

Big deals that take up most of the budget.

Three huge contracts make up about a quarter of all the spending, around R2.25 billion:

The biggest is to Actom (Pty) Ltd for switchgear worth R1.47 billion in February 2026. That's 16% of the total budget over 14 months. Then there's R480 million for fuel to Masana Petroleum Solutions in August 2025, and R285 million for fixing Moses Mabhida Stadium to Schlaich Bergermann Partner Engineering in September. 2025

These big deals show how a few contracts can eat up a lot of money. For the Actom one, it's so large that it makes that month's total spending way higher than others.

Oracle Corporation: The company that dominates tech spending.

They got at least six contracts worth about R460 million, plus more with no prices listed. In May 2025, they won a R306 million deal for a revenue system without any bidding, the city said it was "impractical" to compete. In June, another R123 million for HR software, again no competition

Oracle also got renewals for licenses and support, like R36 million in August 2025. The city uses a special rule to skip bidding. This setup means Oracle doesn't face pressure to lower prices, and the city depends too much on one firm. The city has not explained why Oracle faces no competitive pressure.

Skipping rules: when deviations become normal.

Normally, contracts must go through open bidding so everyone has a fair chance. But eThekwini often uses deviations special rules for emergencies or when bidding is impossible. What should be rare exceptions have become the norm here.

For emergencies, they used it for things like soup kitchens (R38 million to many vendors) and water fixes (R99 million). But soup kitchens aren't new emergencies, they've been around for years. Why not plan and bid properly?

For 'sole providers', like Oracle or chlorine suppliers, they say no one else can do it. But do they check? And the 'impractical' rule is used for all sorts, from software to vehicle tracking (R74 million).

Other ways include using national contracts or negotiations. These are okay sometimes, but too many deviations mean less fairness and more risk of favouritism.

Spotlight on RGZ Projects: A favourite in housing.

RGZ Projects (Pty) Ltd won six contracts worth R210 million in housing. They're in the Human Settlements department, building homes for the poor.

• In March 2025, they got R92 million for infrastructure in Lamontville.

• In April, two more for house tops worth R34 million total.

• In September, R26 million for another phase.

• In January 2026, R21 million for fixing flood-damaged Montclair Lodge without bidding.

One odd deal: In April 2025, RGZ and Uhlanga Trading split R74 million almost exactly (R36.9 million each, differing by 12 cents). No bidding, just negotiations. Why these two? Why the split? It's not clear.

Is the city picking favorites instead of opening to more companies? This could mean less competition and higher costs.

Other strange patterns.

The top 10 contracts total R3.6 billion, 39% of spending. Besides the big three, Oracle has two in the list, and RGZ is number 10.

Refuse collection:

Over 15 contracts worth R300 million+ to a group of companies like Asembo Engineers and Uhlanga Trading. Some are old awards reported late, making it hard to check.

Ushaka Marine World:

R259 million to SAAMBR without bidding. They're a non-profit, but is this fair for such a big tourist spot?

Delta Property Fund:

Leases for offices extended many times, worth millions. Why not shop around for better deals?

Vehicle fleet:

Estimated R1.5 billion+ on cars, fuel, and repairs. Includes R736 million for buying vehicles from big brands like Toyota and BMW.

Problems with how things are reported.

Many contracts say R0.00, hiding the real cost. Like smart meters estimated at R120 million, but listed as zero. This makes it impossible to see the full picture.

Some awards from 2024 show up in 2025 or 2026. By then, it's too late for the public to question.

How we did this and what it means.

We looked at all 14 official reports. But they're not complete, some spending might be missing, and values are often hidden. This isn't proof of wrongdoing, just patterns that need explaining.

eThekwini handles billions for public services. Transparency is key to trust. If rules are bent too often, it could waste money or favor insiders. The public deserves answers to keep things fair.