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Municipal Crisis Deepens: R1.47 Billion Spent on Consultants Amid Audit Failures

Neelam Rahim | neelam@radioislam.co.za
3-minute read

13 June 2025 | 08:30 CAT

Chairperson of the Cooperative Governance and Traditional Affairs Committee Zweli Mkhize addressed a parliamentary cluster briefing on 3 March 2025. Picture: Phando Jikelo/Parliament

South Africa’s municipalities are in a state of collapse. This is the sobering message emerging from the Auditor General’s 2023/24 report, which paints a bleak picture of wasteful expenditure and chronic governance failure. Over R1.47 billion was spent on consultants, while 59% of municipal financial statements were found to contain material misstatements.

Dr Zweli Mhkize, Chairperson of the Parliamentary Committee on Cooperative Governance and Traditional Affairs (COGTA), told Radio Islam International that the continued reliance on consultants, initially intended as a temporary solution has now become entrenched. “In 2013-14, R1.3 billion was spent on consultants. Now, it’s R1.47 billion. The outcome? Only 16% of municipalities achieved clean audits,” he said.

This outsourcing trend reflects a broader breakdown in administrative capacity. “Daily financial records should be maintained internally. The use of consultants signals a failure in municipal finance departments to meet basic expectations,” Mhkize stressed.

Even more concerning is the revelation that 113 municipalities are operating with unfunded budgets, a practice Mkize describes as “a serious transgression.” He explains, “If you adopt a budget without guaranteed revenue, you’re essentially promising services that cannot be delivered.”

Accountability remains elusive. The report notes that 84% of municipalities failed to meet the conditions of the national debt relief programme, meant to ease their debt to Eskom and water boards. Municipalities signed agreements, yet many did not honour them, exposing systemic irresponsibility.

“This report is more than just an audit. It’s a mirror to the dysfunction in our governance structures,” said Mhkize. “There are municipalities that haven’t submitted proper documentation in years. Where were the leaders while this happened?”

He emphasized that responsibility rests not only with municipal officials but also with political parties and provincial governments. “Every layer from the mayor to the premier must be held accountable,” he added.

With essential services deteriorating and taps running dry, Mhkize warns of growing civil unrest. “The numbers don’t lie, and neither do the empty taps. Citizens are waking up to the failures and will demand accountability.”

Listen to the full interview on The Daily Round-Up with Annsia Essacck and Dr Zweli Mhkize.

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