South Africa’s local government has hit a new low, with the Auditor-General’s 2022-23 consolidated report exposing an alarming and ongoing decline in municipal audit outcomes. Out of 257 municipalities, only a paltry 34 received a clean bill of health. This stark reality is not just a bureaucratic concern but a damning indictment of a system plagued by mismanagement, corruption, and a shocking lack of accountability. The R7.4 billion in irregular and wasteful expenditure is just the tip of the iceberg, symbolizing a crisis that threatens the very fabric of local governance and the welfare of millions of South Africans.
Auditor-General Tsakani Maluleke’s latest report reveals a local government system in free fall. Despite previous commitments to improvement, the majority of municipalities remain trapped in a cycle of poor performance and non-compliance. The number of municipalities regressing in audit outcomes has increased, with 36 showing declines since the 2020-21 audit cycle. Only 45 municipalities have shown some semblance of improvement, while a shocking 77 have been stuck in the same dismal category for years, failing to make any progress towards achieving clean audits.
This continued decline is not just a failure of individual municipalities but a systemic breakdown. The repeated non-compliance with legislation by 86% of municipalities, coupled with unreliable and often useless performance reports, makes it nearly impossible to assess or improve municipal performance. The situation has only gotten worse, with material compliance findings increasing over the past three years.
The consequences of this gross mismanagement are catastrophic for ordinary South Africans. Poor financial management has resulted in revenue losses, inadequate billing, and collection practices, and the neglect of vital infrastructure. This neglect has directly impacted service delivery, with unpaid creditors like Eskom and water boards threatening the availability of basic services, and deteriorating infrastructure leaving communities without access to essential amenities.
Infrastructure projects, when they are completed, are often marred by delays, cost overruns, and poor quality, exacerbating the service delivery crisis. New infrastructure frequently lies unused, while existing facilities continue to crumble due to a lack of maintenance. This is not just inefficient; it is immoral. Every rand wasted on irregular expenditure is a rand stolen from the people who need it most—those who are already suffering from inadequate service delivery.
Amid this sea of failure, a small number of municipalities have managed to maintain clean audits, exemplifying what is possible when sound financial management and accountability are prioritized. These municipalities, primarily in KwaZulu-Natal, Mpumalanga, and North West, have demonstrated that with proper oversight and a commitment to transparency, it is possible to manage projects effectively, adhere to budgets and timelines, and deliver quality services to the public.
However, these municipalities are the exception, not the rule. The fact that only 34 out of 257 municipalities received clean audits is a disgrace, highlighting the vast majority’s inability to meet even the most basic standards of governance.
The Auditor-General has called for all stakeholders in the accountability ecosystem to act with urgency to foster a culture of performance, transparency, and integrity. Yet, these calls for action have been met with little more than empty promises. The slow pace of improvement, coupled with the continued regression of many municipalities, shows that the commitment to change is more rhetoric than reality.
It is time for decisive action. This means holding those responsible for financial mismanagement accountable, not just through administrative penalties but through criminal prosecution where necessary. The national and provincial governments must intensify their support for municipalities, not just in words but in concrete actions that address the root causes of financial mismanagement and service delivery failures.
The R7.4 billion lost to irregular expenditure is a symptom of a deeper malaise—a culture of complacency, corruption, and incompetence that has taken root in too many municipalities. If this is not addressed urgently, the consequences for South Africa will be dire. The people deserve better, and it is high time their leaders deliver.
South Africa’s local government is at a crossroads. The Auditor-General’s report is a sobering reminder of the cost of inaction and the price of irresponsibility. The time for complacency is over. The time for accountability is now. South Africa cannot afford to allow its municipalities to continue down this path of financial ruin and service delivery failure. The future of the nation depends on it.
Author: Babalo Ntloko
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