MAHIKENG, NORTH WEST — Several North West municipalities missed the financial statements deadline, highlighting ongoing systemic challenges just as the Auditor-General intensifies efforts to enforce fiscal accountability across the province. Despite the missed submissions and widespread capacity constraints, provincial finance leaders insist that targeted interventions are slowly reversing a trend of severe financial mismanagement.
The broader national picture released by the Auditor-General reveals a challenging landscape for local government finances. Across the country, a mere 15% of municipalities secured clean audits. A staggering 195 local authorities were cited for material misstatements, while 62 are currently navigating severe financial distress. However, a silver lining has emerged in the form of reduced disclaimers, which have plummeted from 29 to just 8 since the 2020/21 financial cycle.
In an unprecedented move to enforce consequences, the Auditor-General recently issued a historic first by slapping a certificate of debt on an accounting officer. The official has been ordered to repay a R4.62 million figure. This landmark decision is being viewed as a critical precedent, signaling a much more aggressive regulatory stance against financial negligence in struggling local governments.
Dikgole Mika Moeti, chairperson of the North West Provincial Working Group on Finance, provided insight into the province’s complex fiscal landscape. Speaking on the ongoing audit outcomes, Moeti acknowledged the severe capacity and information technology governance failures but emphasized that the narrative is shifting. He noted that five municipalities in the province have successfully upgraded their audit outcomes, proving that the collaborative interventions by the South African Local Government Association (SALGA) and the provincial treasury are yielding tangible results.
These improvements are visible across several local authorities. Moeti highlighted that JB Marks and Madibeng have made noteworthy strides, successfully transitioning from qualified to unqualified audit opinions. Additionally, smaller municipalities have managed to escape the dreaded disclaimer category, moving into qualified or adverse opinions. Furthermore, a cluster of four municipalities—including Moses Kotane—have successfully maintained clean, unqualified audit outcomes.
Despite the progress, deep-rooted issues continue to plague the province. Moeti pointed out that municipalities like Kagisano-Molopo are critically understaffed, operating with a mere two active directors. He also noted that a few authorities, including Masilonyana and Kagisano, remain trapped in adverse or disclaimer categories. According to Moeti, these persistent failures are largely driven by prolonged vacancies in critical administrative roles, broken internal controls, and flawed procurement processes.
As the country marches toward the local government elections later this year, the demand for visible, accountable governance has never been higher. Moeti stressed that for sustainable financial health to take root, municipal councils and administrations must share a unified commitment to filling key vacancies and enforcing strict accountability. With the Auditor-General leading a tougher regulatory approach, the pressure is on for North West municipalities to deliver transparent and sustainable service delivery.