South Africa’s Auditor-General (AG), Tsakani Maluleke, has revealed a troubling assessment of local government finances, with only 41 out of 257 municipalities receiving clean audits for the 2023/24 financial year. The findings highlight systemic failures in financial management, infrastructure maintenance, and service delivery, raising concerns about the effectiveness of governance at the municipal level.
Infrastructure Neglect and Water Crisis
During an interview, Maluleke linked the financial mismanagement to deteriorating infrastructure, particularly in the water sector. She noted that many municipalities fail to maintain existing infrastructure or spend allocated funds effectively, leading to delays, cost overruns, and poor-quality work.
“When infrastructure is not maintained, citizens suffer,” Maluleke said. “We found that money designated for water projects is often not spent appropriately, leaving communities without reliable supply.”
Her remarks come as several provinces, including KwaZulu-Natal, face impending water cuts due to maintenance backlogs. Maluleke warned that without urgent intervention, the situation will worsen, as many municipalities lack the discipline and accountability needed to manage funds properly.
Some Improvement, But Concerns Remain
While Maluleke acknowledged a reduction in disclaimed audit opinions—from 28 in 2021 to 14 in 2024—she cautioned that progress remains fragile. Many municipalities relied on expensive consultants to improve their financial reporting, rather than building internal capacity.
“Getting out of a disclaimer is one thing, but staying out requires institutional reforms,” she said. “Municipalities must staff key positions with competent officials and ensure political leaders are held accountable.”
Case Study: Mangaung Metro’s Failed Intervention
The AG also addressed concerns about national interventions, citing Mangaung Metro in the Free State as an example. Mayor Gregory Nthatisi claimed that intervention teams lacked support from local administrators and politicians, undermining progress.
Maluleke agreed, stating: “If political leaders don’t take responsibility, no intervention will succeed. Competence at all levels—administrative and political—is non-negotiable.”
Call for Accountability and Reform
Maluleke’s report underscores the need for:
-
Stronger oversight from provincial and national governments.
-
Better maintenance plans for existing infrastructure.
-
Competent leadership in both administrative and political roles.
“Local government is where service delivery happens,” she emphasized. “If we don’t fix governance here, citizens will continue to suffer.”
Conclusion
With only 16% of municipalities receiving clean audits, Maluleke’s findings paint a grim picture of local governance. While some progress has been made, systemic weaknesses in financial management and infrastructure maintenance threaten South Africa’s ability to deliver basic services. The AG’s message is clear: without accountability and competence, real change remains out of reach.
