ETHEKWINI Municipality remains steadfast in its commitment to clean governance, transparent financial management, and efficient service delivery. This dedication is evident in the recent Municipal Public Accounts Committee (MPAC) reports tabled at a virtual Council meeting on 28 June. Both reports highlighted the necessity for stringent oversight and corrective measures to prevent future irregularities and ensure responsible fiscal management. 

To address unauthorised, irregular, fruitless, and wasteful (UIFW) expenditure, the City has developed and adopted a comprehensive UIFW Reduction Strategy aligned with National Treasury MFMA Circular No. 111. This strategy focuses on reducing irregular expenditure through a series of key interventions:

These measures are being diligently implemented by various Municipal structures, including Council, MPAC, the Financial Misconduct Board, the Audit Committee, and the Executive Committee. These bodies ensure that goods and services have been delivered as specified before processing any related expenditure. The first report tabled by the MPAC Deputy Chairperson Councillor Conrad Dlamini focused on an analysis of UIFW expenditure over multiple financial years. The findings recommended that a total of R24.8 million be written off as irrecoverable. Another recommendation was that R733 000 be recovered from relevant or former officials and service providers. The focus of the second report was on the UIFW expenditure from July 2023 to March 2024 with findings of non-compliance, identified by the Auditor-General with Regulation 8(1) and (2) of the Preferential Procurement Regulations (PPR) 2017. It also found that 85 contracts were awarded in contravention of local content provisions, totalling R931.3 million. The committee recommended that R931.3 million be a write-off and submitted for consequence management processes according to the Council Policy on financial misconduct.

Chairperson of the Governance Committee Councillor Nkosenhle Madlala welcomed the report and explained that the Municipality takes consequence management seriously. He said the City is making substantial progress in this area. “The Independent Financial Misconduct Board is fully functional and actively processing matters. Priority is given to current issues to ensure timely and effective resolution. The City’s zero tolerance approach towards fraud and corruption ensures that any detected instances are promptly addressed in line with applicable laws and policies,” he added. The Municipality’s efforts to strengthen governance and financial management practices demonstrate a commitment to promoting transparency and accountability.