A damning report by the Auditor-General (AG) has exposed the dire financial state of municipalities across South Africa, with experts warning that local government has effectively collapsed due to mismanagement, lack of capacity, and political failures.
The 2023/24 AG report revealed that most municipalities are failing to collect revenue, struggling to pay suppliers, and relying heavily on third parties, while irregular expenditure has skyrocketed to R3.67 billion. The Northern Cape was flagged as one of the worst-performing provinces, with only two municipalities receiving clean audits.
Provincial Government Acknowledges Crisis
Northern Cape Cooperative Governance MEC Bentley Vass expressed deep concern, admitting that serious intervention is needed.
“We are going to monitor municipalities closely and take strong action where officials are not performing. The current state is unacceptable,” Vass said.
The report highlighted that poor governance is most prevalent in the Free State, Northern Cape, and North West, with critical challenges including:
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High vacancy rates in key positions
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Acting officials in crucial roles, including municipal managers
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Lack of skilled personnel, especially in finance departments
“Local Government Has Collapsed” – Analyst
A political analyst, who spoke on the findings, stated that the AG’s report confirms a systemic failure in local governance.
“The previous Auditor-General has been saying the same things—municipalities have collapsed due to a lack of capacity and mismanagement of resources,” the analyst said. “There’s no political will for consequence management. Money meant for communities is being lost, and there’s no real effort to recover it.”
The analyst also dismissed the idea that cadre deployment alone is to blame, arguing that even qualified cadres are no longer available to salvage the situation.
Provincial Government Plans Intervention
MEC Vass announced that the provincial government will embark on a roadshow to engage struggling municipalities and address the regression. However, critics argue that without stronger accountability measures, such efforts may not yield meaningful change.
As municipalities continue to deteriorate, communities bear the brunt of service delivery failures, unpaid suppliers, and financial mismanagement. The AG’s findings underscore an urgent need for overhauling local governance before the crisis deepens further.