The eThekwini Municipality’s Audit Risk Committee (ARC) has raised concerns over critical deficiencies in the management of spaza shop permits, including non-compliance with municipal by-laws and inadequate permit management. According to the ARC report for the second quarter, between October 1, 2025, and December 31, 2025, there were 111 unresolved items on the audit log, with 52 of these items being over 180 days overdue for implementation.
eThekwini Municipality’s Response
Musa Mbhele, eThekwini City Manager, responded to the ARC report by stating that action plans linked to ethical hacking have been addressed, and relevant information has been shared with the internal audit team to verify. Mbhele also mentioned that the spaza shop business permit and informal trade bylaw was reviewed to address pre-existing deficiencies and align with Cooperative Governance and Traditional Affairs (CoGTA) standard draft bylaws, as outlined on the South African Government website.
Key Findings
The ARC report highlighted several key findings, including:
- Non-compliance with municipal by-laws
- Fragmented permit management
- Municipal forms not accounting for applicant’s citizen status
- Weaknesses in the municipality’s Information and Communication Technology (ICT) governance and control
The report also found that the Supply Chain Management (SCM) migration to a software has not yet achieved its intended operational efficiency and transparency outcomes, with multiple contract extensions and inadequate scope control. Additionally, the project impact assessment branch was not operating in line with its approved Standard Operating Procedures (SOP), as no evidence of project impact assessment reports was provided.
As the eThekwini Municipality works to address these deficiencies, it is essential to consider the broader implications for the city’s informal trading sector. With thousands of spaza shops operating in the city, the effective management of permits and compliance with by-laws is crucial for ensuring the sector’s growth and development.
