GERMISTON, Gauteng — The latest Gauteng municipal audit outcomes have revealed a troubling regression in local government financial discipline, prompting Gauteng Finance MEC Nkululeko Dunga to declare that the era of consequence-free mismanagement is over. Delivering a stark assessment of the 2024/2025 financial year, the MEC announced an aggressive intervention strategy aimed at rescuing struggling metros, curbing reliance on external consultants, and holding municipal managers personally accountable for billions in wasteful expenditure.
To emphasize the human impact of balance sheet failures, Dunga bypassed traditional civic center boardrooms in favor of the dusty roads of the Makause Informal Settlement in Primrose, Germiston. He argued that abstract terms like “material irregularities” and “going concern uncertainties” translate directly into human suffering. For Makause residents—who have endured over three decades without land tenure, reliable electricity, or clean water—these audit failures mean uncleaned mobile toilets, waterborne illnesses in children, and streets too narrow and poorly planned for ambulances or police vehicles to navigate during emergencies.
While some locals expressed skepticism, fearing the visit was an electioneering tactic after 36 years of neglect and 15 to 20 years of petitions for permanent land, the provincial government noted that the Premier is actively developing a program to formalize informal settlements across the region.
A Province Regressing: The Audit Breakdown
Gauteng’s 11 municipalities—comprising three metropolitan, two district, and six local municipalities—saw an overall decline in audit performance for the 2024/2025 cycle.
Only two entities achieved clean audits (unqualified with no findings): the Midvaal Local Municipality, which has sustained its pristine record for an impressive 13 consecutive years, and the West Rand District Municipality, which secured its second consecutive clean audit. Dunga praised these entities as proof that clean governance is achievable when leadership is committed.
Six municipalities earned unqualified opinions with findings, while three received qualified audit opinions. Mogale City, Rand West City, Sedibeng District, and Lesedi Local Municipality retained their unqualified-with-findings status. Mogale City was specifically commended for opening the new financial year with a zero balance on unauthorized, irregular, fruitless, and wasteful (UIFW) expenditure. However, Dunga warned that a zero opening balance does not erase historical theft, vowing that past misspending will still be investigated and recovered.
Metro Meltdown: Tshwane, Johannesburg, and Ekurhuleni
The most alarming shifts occurred in the province’s major economic hubs, with both the City of Johannesburg and the City of Ekurhuleni regressing from unqualified to qualified audit opinions. The City of Tshwane remained qualified but posted staggering financial and infrastructure losses.
- City of Tshwane: Recorded the highest irregular expenditure in the province, amassing R12.17 billion over four years. This was coupled with R5.22 billion in unauthorized spending and R3.61 billion in fruitless and wasteful expenditure. Dunga linked this financial indiscipline directly to infrastructure collapse, noting that water losses cost the metro R5.2 billion and electricity losses reached R10.4 billion, leaving residents to pay for systems that leak more than they deliver.
- City of Johannesburg: Accumulated R6.55 billion in irregular, R6.81 billion in unauthorized, and R400 million in fruitless and wasteful expenditure over a four-year span. The MEC linked these figures to tangible public harm, citing a mismanaged landfill, a polluted water source, and an underutilized bus station that leaves commuters in Soweto and Alexandra stranded. Overcommitment on legacy initiatives, such as the Cleveland project, was also flagged as funds vanished without visible service delivery improvements.
- City of Ekurhuleni: Dunga described this metro’s regression as the most “alarming.” Over four years, it piled up R620 million in irregular expenditure, R80 million in fruitless and wasteful spending over three years, and R400 million in unauthorized spending in a single year. A colluding ICT service provider panel cost the metro an inflated R6.99 million, driving R37.68 million in irregular expenditure in one year alone. Furthermore, the Auditor-General identified three distinct material irregularities related to water source pollution that directly harmed the public.
Flashpoints and Second Chances
In Emfuleni Local Municipality, which also retained a qualified status, the metro’s massive historical Eskom debt was recently written off. Dunga cautioned that this debt relief is a “second chance, not an achievement,” urging a fundamental shift in how the municipality manages public funds rather than simply breathing easier under the same poor practices. Merafong City also remained unchanged at a qualified status.
Meanwhile, in the Lesedi Local Municipality, deep community frustration over service delivery boiled over into violence, resulting in the arson attack on Mayor Mluleki Nkosi’s home. Dunga strongly condemned the burning, stating that while community anger over governance failures is real and valid, it must be channeled through the ballot box and organized community voices—never through arson or violence against individuals.
The Crackdown: Dunga’s Action Plan
Blaming legacy issues, systemic corruption, late financial submissions, and a dangerous over-reliance on external consultants, Dunga outlined a rigorous turnaround plan. Working alongside Auditor-General Tsakani Maluleke and provincial oversight bodies, the treasury will introduce a municipal audit finding tracker to prevent the rollover of historical problems from one financial year to the next.
Future interventions include:
- Quarterly Assessments: Regular evaluations of the functioning of internal audit units and audit committees at every municipality.
- Capacity Building: A review of supply chain management policies, targeted training for municipal staff, and a push to fill critical vacancies to reduce the province’s reliance on costly external consultants.
- Collaborative Workshops: Audit preparation workshops will clearly define the responsibilities of municipal managers, Chief Financial Officers, and bid adjudication committees ahead of the 2025/2026 audit cycle.
Most notably, Dunga promised severe consequence management to ensure it is no longer “business as usual.” He warned that municipal managers found presiding over financial irregularities may be forced to repay the money out of their own pockets, and the province is fully prepared to pursue litigation to enforce accountability. With local government elections on the horizon, the provincial treasury is determined to ensure that leadership transitions do not trigger further regressions in service delivery.