Latest stories tagged “municipalities”
Auditor-General Tsakani Maluleke has reported concerning declines in the financial health and service delivery of South Africa's eight largest municipalities, highlighting the need for immediate action to address these issues.
The Treasury has taken action against 35 municipalities, including those in Free State, KwaZulu-Natal, and North West, for having unfunded budgets and owing billions to state entities. This move aims to address financial mismanagement and ensure accountability among local governments.
According to The Citizen, Auditor-General Maluleke has raised concerns over the financial audits of all metropolitan municipalities, highlighting R62.12 billion in debt write-offs and R1.61 billion spent on consultants. Despite these expenditures, 61% of the municipalities submitted flawed financial statements, prompting alarm ahead of the upcoming elections.
The South African government is reportedly implementing stricter financial measures on metropolitan municipalities, as indicated by the Treasury's recent actions. The effectiveness of these measures in addressing the financial challenges faced by these municipalities remains uncertain, raising concerns about potential negative impacts on the municipalities themselves, according to The Citizen.
The Auditor-General has released a report indicating poor financial management in municipalities, marking the first issuance of a certificate of debt to recover financial losses from a municipal accounting officer. Additionally, 76 municipal officials have been referred for investigation due to these financial discrepancies, highlighting ongoing issues in municipal governance, according to Moneyweb.
According to a report by the Auditor-General of South Africa, only 39 municipalities received clean audits. Sharrone Adams, head of audit, highlighted issues at the metro level, stating that officials often do not behave ethically, experience conflicts of interest, and fail to act in the best interest of their institutions.
Municipal spending on consultants in South Africa reached R1.6 billion in the 2024/2025 financial year, a significant increase from R586 million in the 2014/2015 financial year. This rise indicates a growing trend where consultants are taking on roles traditionally held by municipal officials, particularly in the preparation of financial statements.
The Treasury has taken action against 35 municipalities, including those in Free State, KwaZulu-Natal, and North West, for having unfunded budgets and owing billions to state entities. This move aims to address financial mismanagement and ensure accountability among local governments.