Cape Town Fails to Receive a Clean Audit

GOOD Statement by Sandra Dickson, GOOD City of Cape Town Councillor:

The GOOD Party notes the release of the Auditor‑General’s latest local government audit outcomes and cautions against any attempt to portray the City of Cape Town’s audit outcome as a “clean audit”.

The Auditor‑General has confirmed that none of South Africa’s metros achieved a clean audit in the 2024/25 reporting cycle.

Cape Town received an unqualified audit opinion, meaning its financial statements were fairly presented. However, this is not the same as a clean audit.

The Auditor‑General’s own definition of a clean audit is an unqualified opinion with no material findings.

Importantly, the Auditor‑General states:

“An unqualified opinion with findings is not a desirable outcome, and auditees should not become complacent with obtaining such an outcome.”

The Auditor‑General further explains that:

“Material findings” are problems with an institution’s performance reporting, non‑compliance with legislation, or both, and “this could compromise the auditee’s accountability.”

The material findings relate to procurement, tenders and contracts, and have been flagged at the same time the City has seen multiple raids of political office bearers, administration staff and contractors. This convergence of audit concerns and corruption investigations raises serious questions about the integrity of the City’s governance.

Residents deserve an accurate picture of the City’s governance performance. An unqualified opinion is positive, but it should not be misrepresented as a clean audit when the Auditor‑General has expressly stated that no metro achieved that status this year.

The City should now disclose:

• The material findings identified by the Auditor‑General
• The corrective actions that will be implemented and
• The timelines for addressing these shortcomings.

Cape Town residents pay some of the highest municipal bills in the country and are entitled to complete transparency and accountability from their municipal government.

The focus should not be on spin, but on addressing the findings that prevented the City from achieving a clean audit outcome.

GOOD Manifesto on Inclusivity: The party aims to be inclusive, representing all demographics regardless of race or gender.

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