An eThekwini Municipality Audit and Risk Committee (ARC) member will have his contract up for review at the Full Council meeting next Thursday.
This was one of the two items discussed at the eThekwini Executive Committee meeting on Tuesday.
The municipality established an Audit and Risk Committee (ARC) per Section 166 of the Municipal Finance Management Act (MFMA) which requires that each municipality should have an Audit Committee that must serve the purpose of being an independent advisory body to the council, political office bearers, accounting officer, management, and staff.
The contract for six existing members has been recently extended to end on July 1, 2027. The current member, whose name has been withheld, contract expires at the end of February 2025.
City manager Musa Mbhele said this contract term extension takes into consideration the importance of continuity, given the level of business knowledge the existing member has acquired over the period of three years and that appointing new members may require more time.
The estimated total costs for the ARC member’s service are R364 200 for 2025/26, R385 593 for 2026/27, and R406 255 for 2027/28.
“In line with Section 3 of the current member’s contract which states that the contract is renewable by written notification upon completion of council processes to a maximum of six years from the date on which the member assumed duty on the terms and conditions contained in the contract,” Mbhele said.
ln accordance with the Audit Committee Charter, around the frequency of meetings, the Audit Committee holds a minimum of three meetings per quarter and two additional special meetings, thus making a total number of 11 meetings per year.
Acting city manager, Dr Sandile Mnguni, said that during the three-year period, the member displayed commitment to improving the city’s risks, governance and control environment, through preparing in advance for meetings and making a meaningful contribution thereat.
“He discharges his duties diligently, with the municipality and its entities benefiting extensively from his keen eye to detail and strong analysis on matters of compliance and risk management,” Mnguni said.
Inkatha Freedom Party (IFP) Exco member, Mdu Nkosi, said the audit committee was important and supported the contract extension.
“The committee acted as a mirror for us by indicating things we need to take care of,” Nkosi said.
According to the municipality, the mandate and authority of the ARC extends to the municipal-owned entities (MOEs) and organisations funded by eThekwini Municipality.