The Zululand District Municipality - led by the Zulu kingdom prime minister Thulasizwe Buthelezi, a political foe of the ANC-led government - faces "serious governance and institutional management challenges".
This is according to a KwaZulu-Natal cabinet assessment, which follows tension between the IFP and the ANC's provincial leaders.
On Thursday evening, Premier Nomusa Dube-Ncube announced the outcome of a provincial executive council (PEC) meeting that discussed the crisis in KwaZulu-Natal.