Only 34 out of the 257 municipalities in the country have obtained clean audits, representing a mere 13% of adequately run municipalities. Despite commitments made by politicians and officials, the state of financial affairs at the local level has shown little to no improvement since the 2021 local government elections.
Auditor-General Tsakani Maluleka’s findings reveal that while some municipalities have improved their audit outcomes, many have regressed. The lack of effort to move out of the “unqualified audit opinion with findings” category is concerning, with 77 municipalities remaining in this status.
Millions are still being spent on consultants, with some provinces like KwaZulu-Natal, Limpopo, North West, and Mpumalanga leading in expenditure. However, there is a lack of accountability, resulting in poor financial management and service delivery affecting South Africans.
Maluleka’s report highlights issues such as noncompliance with legislation, inadequate performance management systems, and political instability contributing to financial mismanagement. Despite challenges, some municipalities have sustained clean audits through sound financial and performance management disciplines.
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