SCOPA Commends eThekwini Municipality for Transparency and Governance Improvements

The municipality, led by Mayor Cyril Xaba, appeared before SCOPA on 20 May 2026 to account for a wide range of operational, financial and administrative matters affecting the city.

Parliament's Standing Committee on Public Accounts (SCOPA) has praised the eThekwini Municipality for its transparency, improved accountability measures and detailed reporting on governance, financial management and service delivery challenges during a recent oversight engagement in Cape Town.

The municipality, led by Mayor Cyril Xaba, appeared before SCOPA on 20 May 2026 to account for a wide range of operational, financial and administrative matters affecting the city.

SCOPA Chairperson Songezo Zibi commended the municipality's leadership for submitting information to the committee on time and ensuring that all relevant officials attended the session.

SCOPA Says Engagement Not Linked to Wrongdoing

Zibi emphasized that the committee's engagement with eThekwini Municipality should not be interpreted as an indication of wrongdoing.

Instead, he explained that SCOPA is conducting ongoing engagements with major institutions that play strategic roles in supporting South Africa's economy, including metropolitan municipalities, state-owned enterprises and government departments.

"We have already met with leadership of various state-owned enterprises, departments, and metros. Working together, we believe that we will achieve positive results," Zibi said.

The committee's approach reflects growing efforts by Parliament to strengthen oversight, improve governance and support institutional accountability across key public sector entities.

Mayor Xaba Reaffirms Commitment to Accountability

Mayor Cyril Xaba welcomed the engagement and described it as an important mechanism for improving municipal governance and accountability.

He stated that the municipality remains committed to improving performance, transparency and compliance with governance standards.

"I made a commitment to the Auditor-General last year, which I continue to uphold today. This includes improving performance, transparency, accountability, and governance within the municipality," Xaba said.

The Mayor explained that monitoring of audit action plans has now been elevated to both the Executive Committee and municipal Portfolio Committees, where progress is reviewed on a monthly basis.

Audit Findings Reduced Significantly

According to the municipality, stronger oversight mechanisms are already producing measurable improvements.

Municipal officials reported that audit findings were reduced from 25 in the 2022/23 financial year to 13 in the 2024/25 financial year.

Remaining audit findings are primarily linked to:

• Expenditure management

• Procurement processes

• Contract management

• Consequence management

The municipality indicated that additional reforms are being introduced to further strengthen compliance and reduce governance risks.

New Digital Systems Introduced to Improve Financial Controls

To improve financial administration and service provider management, the city is implementing an online invoice processing system.

The system is intended to:

• Reduce payment turnaround times

• Track invoices electronically

• Improve transparency

• Allow suppliers to monitor payment progress online

Officials believe the digital platform will help improve operational efficiency while reducing administrative delays and potential irregularities.

The municipality is also finalising a new tender management system designed to identify government employees conducting business with the state and reduce conflicts of interest previously highlighted by the Auditor-General.

Municipality Reports Stable Financial Position

eThekwini Municipality informed SCOPA that it has maintained unqualified audit opinions over the past five years and remains financially stable despite ongoing service delivery pressures.

Officials said the municipality's current budget is fully funded and aligned with developmental priorities.

The city also noted that National Treasury had affirmed the credibility of the proposed 2026/27 municipal budget.

Additional financial indicators presented to the committee included:

• A collection rate of 94%, in line with National Treasury norms

• Up-to-date payments to Eskom

• Current payments to uMngeni-uThukela Water

The municipality stated that maintaining financial discipline remains central to ensuring sustainable service delivery and infrastructure investment.

Investigations Into EPWP Irregularities Underway

The municipality also briefed SCOPA on progress regarding concerns linked to the Expanded Public Works Programme (EPWP).

Municipal officials confirmed that investigations conducted by the City Integrity and Investigations Directorate have been completed.

As a result:

• Disciplinary proceedings have been initiated against implicated individuals

• Legal recovery processes have begun for funds linked to double-dipping allegations

• Certain matters have been referred to law enforcement agencies for criminal investigation

The municipality said it remains committed to ensuring accountability and consequence management in cases involving misconduct or financial irregularities.

Irregular Expenditure Linked to Procurement Compliance

Addressing concerns regarding irregular expenditure, municipal officials explained that much of the increase stemmed from non-compliance with Preferential Procurement Regulations related to local content requirements.

According to the city, some contracts had previously been awarded without the required local content specifications.

However, officials said all new contracts now include minimum local content thresholds to ensure compliance with procurement regulations.

Only 18 active contracts remain affected by previous non-compliance issues, and the municipality expressed confidence that irregular expenditure linked to local content matters would be eliminated by the end of the next financial year.

Water and Sanitation Turnaround Strategy Intensified

One of the major issues discussed during the SCOPA engagement was the municipality's efforts to address non-revenue water (NRW), which currently stands at 53%.

Non-revenue water refers to water lost through leaks, theft, faulty meters or system inefficiencies before it reaches paying customers.

The municipality said it is intensifying implementation of its Water and Sanitation Turnaround Strategy aimed at improving water supply reliability and reducing losses.

Mayor Xaba explained that the strategy forms part of broader reforms supported by National Treasury to improve municipal trading services and infrastructure management.

Major Infrastructure Upgrades Underway

Key interventions under the turnaround plan include:

• Replacing old and faulty water meters

• Improving billing systems

• Customer data cleansing

• Pressure management systems

• Leak detection programmes

• Accelerated pipe replacement projects

• Improved infrastructure maintenance

The municipality also committed to improving response times to burst pipes and water leaks, with teams expected to respond within 24 hours of reported incidents.

R1.2 Billion Southern Aqueduct Project Highlighted

Among the flagship infrastructure projects currently underway is the R1.2 billion Southern Aqueduct Project.

The project involves replacing a 70-year-old 900mm concrete pipeline with a new 1200mm steel pipe aimed at stabilising water supply in Durban central and southern areas.

Officials believe the upgrade will significantly improve water reliability and reduce infrastructure failures affecting residents and businesses.

Governance Reforms Seen as Key to Service Delivery Improvement

The engagement between SCOPA and eThekwini Municipality reflects growing national focus on improving governance, financial oversight and service delivery performance within municipalities.

South African metros continue to face significant infrastructure, governance and financial pressures, making accountability reforms increasingly important for restoring public confidence.

The municipality's efforts to strengthen audit compliance, improve procurement oversight and modernise infrastructure systems are being viewed as important steps toward improving operational efficiency and long-term service delivery sustainability.