The office of the Auditor-General (AG) has reported regression of clean audits in the 2022/23 local government audit outcomes.
On Tuesday, AG Tsakani Maluleke briefed Parliament‘s Portfolio Committee on Cooperative Governance and Traditional Affairs (CoGTA) on the consolidated general report on local government audit outcomes 2022/23.
She revealed that the outcomes of the municipalities, including those finalised after 31 March 2024, showed 34 clean audits, 110 unqualified with findings, 90 qualified with findings, 6 adverse findings, 14 disclaimed with findings, and 3 outstanding audits.
The Auditor-General pointed out that only 34 of South Africa’s 257 Metropolitan, District and Local Municipalities received clean audit outcomes.
“While 45 municipalities have improved their audit outcomes since 2020-21, 36 have regressed,” Maluleke highlighted.
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The AG further noted that poor financial stability and controls have a direct impact on the lives of communities living in municipalities.
“Wasted money and resources means reduced funding for service delivery priorities and, eventually, a greater burden on taxpayers. The lack of credible reporting on performance and finances weakens not only municipal accountability processes, but also the council’s ability to assess the municipality’s performance or to make decisions in response to underachievement.
“These continuing failures in the most critical part of municipal operations are not receiving the necessary attention from the elected leadership,” she said.
Maluleke implored council leaderships to take action, adding that “the responsible use of the limited funds available will only be enabled when municipalities are capable, cooperative, accountable and responsive, and when they deliver on their mandates.”
“Municipal leadership, councils and mayors play a critical role in setting the tone for ethical behaviour, good governance and accountability; and in creating a culture that fosters trust and confidence in local government,” the Auditor-General stressed.
