Neelam Rahim | neelam@radioislam.co.za
3-minute read
29 May 2025 | 17:45 CAT

South Africa’s Auditor General Tsakani Maluleke reveals only 41 of 257 municipalities received a clean audit for 2023–2024.

A damning report by the Auditor General (AG) Tsakani Maluleke has laid bare the deteriorating state of South Africa’s municipalities, revealing that only 41 out of 257 achieved a clean audit for the 2023–2024 financial year.

In a sobering interview with Radio Islam, Vanuja Maharaj, Head of Portfolio at the AG’s office, explained what a clean audit entails. “It’s about three aspects: accurate annual financial statements, credible performance reporting, and compliance with legislation,” said Maharaj. “Clean audits are the foundation for effective service delivery.”

Yet, this foundation is evidently missing in the majority of municipalities. With just one metropolitan municipality – the City of Cape Town – achieving a clean audit, the findings are, as Maharaj describes, “very concerning.”

The AG’s report highlights systemic weaknesses: poor financial management, governance failures, and weak institutional capability. Maharaj stressed, “As long as you remain in that situation, you probably have an environment where the controls are not great… there’s probably insufficient accountability.”

Shockingly, 71 out of 99 municipalities that received “unqualified” audit opinions had to adjust their financial statements post-audit – a move that signals deeper dysfunction. “This is not something to celebrate,” Maharaj warned, adding that these municipalities often operate in a “comfort zone.”

Equally alarming is the nearly R1.5 billion spent on financial consultants by municipalities, often without results. “You’re still finding errors in that work,” Maharaj noted. “What’s the value for money received?”

The AG’s findings further question the effectiveness of capacity-building and training interventions. “Despite these investments, we’re not seeing the change we desire,” Maharaj said.

The core reasons for municipal collapse, she pointed out, lie in governance. “If political and administrative leaders were fulfilling their roles as legislated, we shouldn’t be seeing these issues.” Furthermore, provincial oversight bodies, including Premiers’ Offices and MECs for Finance and Local Government, “do not act with urgency.”

The 2023–2024 audit outcomes should serve as a wake-up call. Without immediate, decisive intervention across all spheres of government, South Africa’s local governance risks total collapse. As Maharaj concluded: “Some municipalities are consistently receiving disclaimers. No records, no accountability – and yet, no action is taken.”

Listen to the full interview on The Daily Round-Up with Moulana Habib Bobat and Vanuja Maharaj.