Auditor-General's Report reveals governance failures in EThekwini municipality
A lack of accountability and consequence management, a slow response by leadership and management as well as instability in the Supply Chain Management Unit was a cause for concern in the eThewini Municipality.
These were some of the findings by the office of the Auditor General of South Africa that had addressed a municipality full council meeting on Thursday, in Durban. The municipality has maintained an unqualified audit opinion for the financial year ending 30 June 2024.
The AGSA business unit leader in KwaZulu-Natal, Nomalungelo Mkhize said there was a lack of comprehensive planning and robust project monitoring and in some instances financial mismanagement with late payments. Mkhize said citizens were not benefiting from the projects as planned. As a result, Mkhize said there was a negative public perception and negative publicity around eThekwini municipality.
“We found that there are recurring concerns affecting service delivery and projects. It is not the first time that we are reporting on some of the findings. These highlight both technical and governance related weaknesses that do render the successful execution of key infrastructure initiatives," Mkhize said.
The AGSA found that there are inadequate means of assessment or project planning. The AGSA found that there were contractor and consultant performance issues; that some contractors were not qualified or incapable to meet the standards and this resulted in delays in meeting milestones and contract specifications.
The AGSA found that contractors delivered a low standard of work with cost overruns and in some instances new contractors had to be appointed to fix issues. Mkhize said there was no accountability or consequences for underperformance.
“We must set the tone at the top by shifting the culture towards that of compliance, laws and regulations, credible performance reporting and effective project management. These are the three major areas.This can be achieved by adequate oversight” Mkhize said.
The DA’s caucus leader in eThekwini, Councillor Thabani Mthethwa, said the AGSA report highlights the severe mismanagement and lack of accountability at the highest levels of the city’s administration.
“The report paints a clear picture of the City’s failing leadership, with a specific focus on the slow and ineffective response to management issues, as well as the City’s failure to back up reported achievements with tangible evidence,” Mthethwa said.
Zwakele Mncwango, ActionSA’s KwaZulu-Natal provincial chairperson, said the report paints a bleak picture of governance in eThekwini and confirms what residents have long known—the Municipality is failing dismally. Mncwango said the report highlighted severe delays in implementing critical water and electricity projects, exacerbating the already dire state of service delivery.
City Manager Musa Mbhele said the municipality welcomed the latest audit report, saying it continues the proud record of the municipality of receiving an unqualified opinion since inception and reflects the municipality’s commitment to sound financial management and transparent reporting.
“However, the Auditor-General’s report identified non-compliance findings in the report on compliance with legislation, material findings in the Annual Performance Report and material irregularities,” Mbhele said.
He said that the municipality acknowledges these findings and is committed to addressing them through enhanced oversight, strengthened internal controls, improving compliance measures, rigorous performance monitoring, and strict enforcement of accountability for transgressions.
“We take these findings seriously and are already implementing corrective measures to ensure full compliance with legislative requirements and improved performance reporting. Our continued commitment to good governance and provision of basic services remains our top priority. This includes the provision of water, sanitation, roads, electricity and human settlements,” said Mbhele.
Mbhele said they remain dedicated to financial integrity, regulatory compliance, and continuous improvement in service delivery.
zainul.dawood@inl.co.za