POLOKWANE, LIMPOPO – The Polokwane Municipality has achieved its fourth consecutive clean audit, standing out as one of only two municipalities in Limpopo to receive this distinction in the Auditor-General’s 2024/25 local government audit outcomes. Executive Mayor Mokoro John Mpe attributes this financial milestone to a rigorous overhaul of the municipality’s financial management, the professionalization of its workforce, and a strict commitment to consequence management.
Nationally, the Auditor-General’s recent local government audit outcomes revealed that only 39 out of 257 municipalities achieved clean audits. Polokwane’s ability to secure an unqualified audit opinion for the fourth year in a row highlights a significant turnaround in its financial governance.
In-House Financial Management and Revenue Growth
Speaking to the media about the state of the municipality, Executive Mayor Mokoro John Mpe explained that the clean audit was achieved by reducing audit findings year on year and employing the right professionals. The municipality now boasts four qualified chartered accountants, and a strict policy has been implemented requiring every manager in the finance department to be a qualified chartered accountant.
This professionalization has allowed the municipality to bring its financial reporting in-house. Mayor Mpe confirmed that the municipality no longer uses external consultants to prepare its annual financial statements or to handle VAT and tax issues, resulting in substantial cost savings. While some consultants are still utilized for complex asset management—particularly regarding biological assets and the municipality’s vast infrastructure—the shift toward internal capacity has been a major success.
The financial overhaul has yielded tangible economic results. Since the 2020/2021 financial year, the municipality’s revenue has nearly doubled, growing from R1.6 billion to R2.8 billion. Furthermore, the municipality’s grading has been elevated from a grade 5 to a status equivalent to that of a metropolitan municipality, reflecting its growing economic footprint. Mayor Mpe also noted that the municipality is financially disciplined, paying over R100 million to Eskom and over R30 million to the local utility, Leel, every month without fail, carrying no debt to either entity.
R1 Billion Water Infrastructure Investment
Despite the financial successes, the municipality continues to battle service delivery challenges, particularly regarding water supply interruptions and aging road infrastructure. Polokwane is recognized as a water-scarce region experiencing massive population and economic growth.
To address this, Mayor Mpe highlighted that over the past five years, the municipality has spent nearly R1 billion to improve the water situation. In the current financial year alone, 14 water projects valued at over R200 million have been completed, alongside two emergency refurbishment projects.
Significant upgrades have been completed in Seshego, where a state-of-the-art water purification plant now utilizes a hybrid of boreholes and surface water to supply 8 million liters a day. Additionally, the municipality is commissioning a 10-million-liter reservoir originally built by the Department of Water and Sanitation. Rural areas, including Lebowakgomo, Ebenezer, Olifantspoort, and Blood River, have also seen the completion of various stabilization and refurbishment projects.
Combating Vandalism and Water Mafias
Addressing ongoing complaints from residents and a recent complaint lodged by the DA to the Public Protector regarding prolonged water outages, Mayor Mpe dismissed the claims as outdated. He attributed current localized water issues to severe infrastructure vandalism, sabotage by “water mafias,” and the challenges of maintaining a vast, fast-growing secondary city.
To combat this, the municipality has overhauled its security approach. The municipality has ceased the use of private water trucks—having purchased its own fleet—to eliminate the profit motive behind infrastructure sabotage. A hybrid security model, combining municipal and private security personnel, has been deployed to guard critical installations. This is bolstered by the deployment of CCTV technology and remote monitoring systems to detect tampering at substations and pump stations in real-time.
Residents are also being mobilized to remain vigilant, and the municipality has introduced the “My Polokwane Citizen” app to allow the public to report service delivery incidents and vandalism directly.
Strict Consequence Management and Corruption Scandals
A key pillar of the municipality’s turnaround has been its approach to consequence management. Mayor Mpe addressed past scandals, including the “ghost buses” controversy surrounding the Bus Rapid Transit (BRT) project. The municipality instituted its own investigation and discovered that the supplying company lacked the requisite capacity.
Disciplinary action was taken against implicated employees, several of whom resigned. The matter was subsequently reported to the Hawks and the South African Police Service. The supplier company has since been liquidated, and the municipality is working with law enforcement to recover the funds.
Similarly, regarding a botched bus depot project where contractors were paid R31 million for a R29.4 million budgeted project that was never completed, the municipality has taken action against current and past accounting officers. Mayor Mpe emphasized that acting on material irregularities identified by the Auditor-General is non-negotiable for maintaining a clean audit.
When questioned about a recent raid by the Hawks on municipal offices to seize documents, Mayor Mpe stated that the municipality has fully cooperated with all lawful processes from law enforcement agencies, noting that they even followed up to provide additional requested documentation.
Public Feedback and Future Outlook
Public feedback reflects a municipality in transition. While many residents have praised the improved governance, stabilized water provision in urban areas, and the tarred roads in townships and rural villages, concerns remain. Residents have raised issues regarding potholes on Peter Mokaba Street, non-functional street lights, and water shortages in deep rural areas.
Responding to these concerns, Mayor Mpe maintained that there is no distinction in service delivery standards between rural areas, townships, and suburbs, reaffirming the municipality’s commitment to equitable development. With catalyst projects being implemented and international investments flowing into the local hospitality and sports sectors—including the municipal management of the Peter Mokaba Stadium—Polokwane aims to build on its clean audit streak while aggressively tackling its remaining service delivery backlogs.
