THEEWATERSKLOOF, WESTERN CAPE — Theewaterskloof Municipality is experiencing a sharp administrative and financial decline, having lost its consecutive clean audit streak and now facing serious concerns over its ability to operate sustainably in the Western Cape.
Just five years ago, the local municipality was celebrated as a success story in South African local government. Home to the country’s seventh-largest dam, thriving agricultural farms, and growing tourism towns like Villiersdorp and Caledon, the area’s picturesque landscape previously masked a rapidly deteriorating financial trajectory.
In 2020 and 2021, Theewaterskloof received clean audits—the gold standard for local government. However, this status quickly slipped to an unqualified audit with findings, before plummeting to two consecutive qualified audits in 2023 and 2024.
The Auditor-General of South Africa (AGSA) noted that regressions of this nature are highly unusual. Furthermore, the municipality is now one of only 62 in the country flagged for “growing uncertainty,” indicating severe concerns about its sustainable operations if current financial pressures persist. The AGSA has warned that poor audit outcomes directly correlate with weakened service delivery and reduced accountability for residents.
The financial deterioration coincides with significant political turbulence. Since the 2021 local government elections, no single party has held an outright majority in Theewaterskloof, resulting in multiple coalition shifts.
An Economic Freedom Fighters (EFF) spokesperson argued that this political instability has directly spilled over into the municipality’s administration, creating a direct link to failing service delivery.
“Currently, the municipality does not have a permanent municipal manager; the current manager is only acting. Running a municipality without a stable Chief Financial Officer (CFO) is highly problematic,” the EFF spokesperson stated.
The spokesperson also criticized the handling of disciplinary issues, suggesting that the suspension of various officials lacks clear justification and resembles a mere “pageant.”
According to the AGSA, instability and vacancies in key positions—particularly the CFO role—are primary drivers behind the worsening audit outcomes across the Western Cape. The EFF highlighted that revenue collection has dropped below 50%, calling it a direct consequence of lacking proper leadership in critical financial positions.
Demanding accountability, the EFF spokesperson emphasized that two consecutive qualified audits must trigger real consequences.
“If you had a shortfall of over R40 million missing in the 2023/24 financial year, at least someone should answer for that,” the EFF spokesperson asserted.
Requests for comment from Theewaterskloof Municipality regarding the Auditor-General’s findings and the mounting financial pressures yielded no response at the time of publication.
