ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
ETHEKWINI RECORDS IMPROVED AUDIT OUTCOME AND REINFORCES GOOD GOVERNANCE
EThekwini Municipality has achieved an improved audit outcome for the 2024/25 financial year, reflecting solid progress in strengthening financial management, performance reporting, and overall governance.
The Auditor-General of South Africa (AGSA) has issued the Municipality an unqualified audit opinion, confirming that the annual financial statements present eThekwini’s financial position in accordance with all applicable accounting standards.
Importantly, the Auditor-General once again confirmed that there were no material findings on the financial statements, an important milestone in improving financial controls and reporting integrity.
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.
The AGSA noted a year-on-year improvement in the quality of the annual performance report, with a greater proportion of indicators assessed as reliable and useful, following audit adjustments.
While the improved audit outcome is encouraging, the Municipality recognises that some challenges remain.
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
The Municipality has committed to accelerating corrective actions through strengthened oversight, enhanced consequence management, and targeted reforms in infrastructure delivery, project execution, and information technology.
Financial Health and Sustainability
EThekwini recorded a surplus for the 2024/25 financial year, confirming that revenue exceeded expenditure, signalling a more stable financial position.
Although the Auditor-General highlighted ongoing pressures - including debt collection challenges and creditor payment timelines - the Municipality has prioritised measures to strengthen cashflow, improve collection rates, enhance revenue management, and shorten payment cycles.
These efforts are aimed at protecting long-term financial sustainability, while ensuring consistent delivery of essential services to residents.
Leadership Commitment
Municipal leadership has reiterated its commitment to:
• Implementing audit action plans within set timeframes
• Strengthening internal controls and governance systems
• Improving service delivery outcomes
• Addressing material irregularities decisively
• Enforcing effective consequence management
• Restoring public confidence through transparency and accountability
This improved audit outcome demonstrates that focused leadership, strengthened oversight, and disciplined financial management can deliver tangible results.
While challenges remain, the Municipality is firmly committed to sustaining these improvements and addressing all weaknesses identified by the Auditor-General.
The Municipality will continue working closely with Council, oversight committees, and the Auditor-General to ensure ongoing improvements in audit performance and, most importantly, better service delivery for the people of eThekwini.
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate
