The Audit Risk Committee (ARC) found that the eThekwini Municipality is utilising a legacy system to undertake property valuations, which requires frequent, continuous updates and enhancements, which are both time-consuming and may impact operational efficiency.
The ARC chairperson, Professor Imtiaz Vally, presented his report for the third quarter ending March 31, 2026, to the eThekwini Executive Committee (Exco) on Tuesday. One of the matters highlighted by the committee was the nature of the 2026 valuation roll.
Vally stated that the 2026 valuation roll involves many simultaneous updates occurring across the deeds office data, the eThekwini Municipality property system, Value Assist, and the Revenue Management System (RMS).
“For this reason, there will always be minor differences between these data sets. A review of the 2026 valuation roll identified some minor exceptions relating to the property data utilised from the various systems to develop the general valuation roll,” he said.
The ARC report outlined that these exceptions primarily relate to data extraction and reporting limitations, rather than an absence of underlying property information, which is resolved during ongoing data cleansing processes.
The report stated that the primary data on the valuation roll is readily accessible for queries and follow-ups.
The municipality stated in its response that the system remains functional, stable, and fit for purpose, and it has successfully supported the delivery of the 2026 valuation roll.
City Manager Musa Mbhele said the system continues to support key valuation processes and integration with the Geographic Information Systems (GIS) department and RMS.
“This has not impacted the municipality’s ability to produce a compliant and credible valuation roll,” he said.
Mbhele added that implementing a new system is part of a broader Municipal Standard Chart of Accounts (MSCOA)-aligned system reform programme.
He said a business case for a new system was approved, and the procurement process is in progress with a bid evaluation under way.
“In the interim, the municipality will use the Value Assist System to ensure operational requirements,” Mbhele said.
The municipality welcomed progress made in strengthening governance, accountability, and internal controls through the implementation of Internal Audit and Auditor-General action plans.
As of March 31, 2026, 54% (334 of 623) of Internal Audit findings had been resolved, compared with 48% (278 of 579) at the end of December 2025.
Mbhele said outstanding matters continue to receive focused attention, prioritising those unresolved for more than 180 days.
The Exco also received an update on the 13 material irregularities identified by the Auditor-General between 2020/21 and 2025/26.
The municipality reported that five have been resolved, five have corrective action implemented, two remain under further action, and one is subject to an Auditor-General directive.
Mbhele emphasised stronger accountability measures, including incorporating audit action plan implementation into executive directors’ performance assessments, weighted at 20%.
He said this has strengthened accountability and encouraged prioritisation of audit resolution.
zainul.dawood@inl.co.za
