The ANC in the eThekwini Municipality stated that a clean audit is not an end in itself, but it is about restoring public trust, improving service delivery, and ensuring that every rand entrusted to the municipality is used to improve the lives of residents.

Nkosenhle Madlala, the ANC eThekwini chairperson of the Governance Committee, remarked in response to the Auditor-General of South Africa (AGSA) audit outcomes from the 2024 and 2025 financial years presented at a council meeting on Thursday. The AGSA has issued the municipality an unqualified audit opinion. 

The A-G confirmed that there were no material findings on the financial statements.

Key highlights from the audit report include:

• Unqualified audit opinion with no material findings on the financial statements,
• Improved quality of performance reporting, with stronger alignment between reported results and supporting evidence,
• Resolution of prior year non-compliance, relating to strategic planning and performance management.

Areas requiring focused attention include:

• Procurement and contract management
• Asset and infrastructure management
• Consequence management for irregular, fruitless, and wasteful expenditure
• ICT modernisation and systems integration
• Project management
• Material Irregularities

In a statement, the municipality stated that it will focus on corrective actions through strengthened oversight, enhanced consequence management, and targeted reforms in infrastructure delivery, project execution, and information technology.

“eThekwini recorded a surplus for the 2024/25 financial year, confirming that revenue exceeded expenditure, signalling a more stable financial position. This improved audit outcome demonstrates that focused leadership, strengthened oversight, and disciplined financial management can deliver tangible results,” the municipality said.

Madlala stated that the AGSA report gave an honest mirror of where the municipality stood and indicated to leadership areas where progress has been made.

“It also confronts us with the hard truth that there is still much work to be done. Let me begin by acknowledging the improvements. The unqualified audit opinion is not a small achievement. It reflects improved financial controls, better reporting discipline, and a growing culture of accountability,” he said.

Madlala said the “serious challenges” of procurement, contract management, irregular expenditure, slow consequence management, and ongoing deficiencies in asset and revenue management cannot be ignored.

“As leaders, we accept these findings without defensiveness and without reservation,” he said, adding that the ANC intends to strengthen oversight to ensure that audit action plans are implemented on time, with clear lines of accountability.

He said the ANC in the eThekwini Municipality will focus on: 

• Accelerating consequence management, particularly in cases of irregular, fruitless, and wasteful expenditure.
• Stabilising and modernising the ICT environment, with improved governance, better system integration, and more accurate billing.
• Tightening procurement and contract management controls to eliminate repeat non-compliance.
• Improving infrastructure planning, project management, and maintenance, with stronger oversight and better alignment to budgets.
• Strengthening financial sustainability by improving revenue collection, paying creditors within legislated time frames, and reducing water and electricity losses.

Councillor Thabani Mthethwa, DA eThekwini Caucus leader, stated at the council meeting that the AGSA report exposed the deep rot within the municipality and a gross failure of accountability by management.

He stated that despite persistent and repeated findings, municipal leadership continues to show a disturbing disregard for residents and ratepayers.

“Irregular expenditure and fruitless and wasteful expenditure increased in the last financial year alone, clearly indicating that financial mismanagement is accelerating. Despite recording a reported surplus of R263 million, the auditor cautioned that the municipality’s financial health remains under severe strain due to prolonged debt-collection periods, a high impairment rate on receivables, and delayed payments to creditors, all of which pose ongoing liquidity and compliance risks,” he said.

Nomalungelo Mkhize, Business Unit leader at the AGSA, presented the report at a council meeting on Thursday. 

“Councillors should request regular progress reports from management on the audit findings relating to the audit of financial statements, annual performance report, and compliance with legislation. Officials should be held accountable for the non-implementation of the audit action plan,” she said.  

zainul.dawood@inl.co.za

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