POLOKWANE, LIMPOPO – The Polokwane Municipality clean audit achievement marks a significant financial milestone, making it one of only two local municipalities in Limpopo to secure this distinction in the Auditor-General’s 2024/25 local government audit outcomes. Executive Mayor Mokoro John Mpe, whose administration has now delivered four consecutive unqualified audit opinions, attributes this success to aggressive financial restructuring, the eradication of external consultant dependency, and a zero-tolerance approach to corruption.
Nationally, the recent Auditor-General outcomes revealed that a mere 39 out of 257 municipalities achieved clean audits. Polokwane’s ability to consistently secure an unqualified opinion highlights a drastic shift in its internal governance and financial management.
Eradicating Consultant Dependency and Boosting Revenue
To achieve these financial milestones, Mayor Mokoro John Mpe took personal responsibility for chairing the municipality’s audit steering committee. The administration’s strategy focused on moving from a qualified to an unqualified audit by systematically reducing findings and professionalizing the workforce.
A major structural change was the hiring of four qualified chartered accountants and the implementation of a strict policy requiring every single manager within the finance department to be a chartered accountant—a benchmark that even several metropolitan municipalities struggle to meet.
This internal capacity building has allowed the municipality to bring its Annual Financial Statements (AFS) in-house. Mayor Mpe confirmed that the municipality no longer relies on external consultants to prepare its AFS or to handle VAT and tax issues, resulting in substantial financial savings. While the municipality still utilizes some consultants for complex asset management—specifically regarding biological assets like animals and vast infrastructure entities—the overall reliance on external firms has plummeted.
This financial discipline has yielded massive economic dividends. Since the 2020/2021 financial year, municipal revenue has nearly doubled, surging from R1.6 billion to R2.8 billion. Furthermore, the municipality has been upgraded from a grade 5 status to a grading equivalent to that of a metropolitan municipality, reflecting its expanding economic footprint.
Tackling the Water Crisis and Infrastructure Vandalism
Despite its financial health, the municipality continues to navigate severe service delivery challenges, particularly regarding water supply in a water-scarce region experiencing rapid population and economic expansion.
To combat this, the municipality has spent nearly R1 billion over the past five years on water infrastructure. In the current financial year alone, 14 water projects valued at over R200 million have been completed, alongside two emergency refurbishment initiatives.
Significant upgrades include a state-of-the-art purification plant in Seshego, which utilizes a hybrid system of boreholes and surface water to supply 8 million liters daily. Additionally, the municipality is commissioning a 10-million-liter reservoir—originally constructed by the Department of Water and Sanitation but previously unused—to manage overflow. Rural stabilization projects have also been completed in areas including Lebowakgomo, Ebenezer, Olifantspoort, and Blood River.
Addressing a recent complaint lodged by the DA to the Public Protector regarding prolonged water outages, Mayor Mpe dismissed the claims as outdated. He noted that the urban complex and city center currently have stable water access, and highlighted that the municipality pays over R100 million to Eskom and over R30 million to the local utility, Leel, every month without fail. A new performance-based service level agreement with Leel is also in the works.
However, rural areas and peripheral networks remain vulnerable to sabotage by “water mafias” and infrastructure vandals. Mayor Mpe revealed that the municipality completely abolished the use of private water trucks, opting instead to purchase its own fleet, after discovering that former private truck operators were intentionally sabotaging pipes to maintain their profits.
To protect critical infrastructure, a hybrid security model combining municipal and private security personnel has been deployed. The municipality is also investing heavily in CCTV and remote monitoring technology to secure remote substations and pump stations. Furthermore, the “My Polokwane Citizen” app has been launched to allow residents to report vandalism and service delivery issues in real-time.
Consequence Management: The Ghost Buses and Depot Scandals
A cornerstone of the municipality’s turnaround is its strict consequence management, particularly regarding historical corruption scandals.
Mayor Mpe addressed the “ghost buses” controversy surrounding the Bus Rapid Transit (BRT) project, which originated around 2018. The municipality self-reported the irregularity, launching an internal investigation that revealed the supplying company lacked the requisite capacity. Disciplinary action was instituted, leading to the resignation and flight of several senior officials. The matter was handed over to the Hawks and the South African Police Service. The supplier company subsequently entered business rescue and was liquidated, with the municipality currently working with law enforcement to recover the stolen funds.
Similarly, the municipality uncovered irregularities at a bus depot project. Initially budgeted at R29.4 million, the project saw payments of R31 million to two main contractors despite remaining incomplete. Disciplinary action has been taken against the current accounting officer and other implicated individuals.
When questioned about a recent raid by the Hawks on municipal offices to seize documents, Mayor Mpe assured the public that the municipality is fully cooperating with all lawful processes, noting that officials have even proactively followed up to provide additional requested documentation.
Resident Feedback and Future Economic Catalysts
Public feedback reflects a municipality in active transition. While many residents have praised the improved governance, stabilized urban water provision, and the tarred roads in townships and rural villages, some concerns remain. Residents have specifically highlighted ongoing issues with potholes on Peter Mokaba Street and non-functional streetlights that have been out of commission for years.
However, other residents from deep rural areas, such as Moletjie, expressed high satisfaction, noting that the gap in service delivery between rural areas, locations, and suburbs has significantly closed under the current leadership.
Looking ahead, the municipality is focused on economic expansion. Catalyst projects are currently being implemented, and international investments are flowing into the local hospitality sector. Unlike other cities that have privatized their sports facilities, Polokwane has kept its sports assets public and has taken over the direct management of the Peter Mokaba Stadium, signaling a commitment to both equitable service delivery and robust local economic growth.