NORTH WEST — Five municipalities have missed the deadline to submit financial statements, underscoring persistent capacity and system failures within the North West province’s local government sector, according to the latest Auditor-General assessments.
The Auditor-General’s recent findings paint a mixed picture of local government financial health across the country. Nationally, only 15% of municipalities achieved clean audits. Meanwhile, 195 municipalities recorded material misstatements, and 62 are currently classified as being in severe financial distress. However, there are notable areas of progress; the number of audit disclaimers has dropped significantly from 29 to 8 since the 2020/21 financial year.
In a landmark move for accountability, the Auditor-General recently issued the first-ever certificate of debt against an accounting officer, ordering the repayment of a R4.62 million figure. This unprecedented action is being closely watched as a potential precedent for aggressively pursuing financial accountability in struggling municipalities.
The North West province remains heavily flagged for systemic capacity and IT failures, but local leadership maintains that the trajectory is improving despite several negative findings. Dikgole Mika Moeti, chairperson of the North West Provincial Working Group on Finance, noted that targeted interventions by the South African Local Government Association (SALGA) and the provincial treasury are yielding tangible results.
According to Moeti, noteworthy improvements have been seen in municipalities such as JB Marks and Madibeng, which have successfully transitioned from qualified to unqualified audit opinions. He highlighted that some smaller municipalities have moved out of the disclaimer category into qualified or adverse opinions, while about four municipalities in the province have managed to maintain unqualified audit opinions.
Despite these gains, severe challenges remain, with some municipalities still stuck in adverse or disclaimer categories. Moeti pointed to prolonged vacancies in key administrative positions as a major hindrance, citing Kagisano-Molopo as a prime example where only two directors are currently active. He also identified weak internal controls, poor information technology governance, and flawed procurement processes as the root causes of financial mismanagement.
Addressing the path toward sustainable governance, Moeti emphasized that the interventions by SALGA and the provincial treasury are already bringing results, proving that improvement is possible. He stressed that for lasting change, municipal councils and administrations must share a firm commitment to filling critical vacancies and enforcing strict accountability measures.
With local government elections approaching later this year, the push for visible, responsible financial management and the elimination of complete mismanagement in the North West remains a critical priority for residents and oversight bodies alike.
