Calling for Greater Accountability Following Auditor-General's Local Government Audit Report

Johannesburg, Wednesday, 24 June 2026 — Public Interest SA has noted the release of the Auditor-General of South Africa's Consolidated General Report on Local Government Audit Outcomes 2024–25 and commends Auditor-General Tsakani Maluleke and her office for continuing to provide independent, evidence-based oversight of the state of local government in South Africa.

The report presents a sobering assessment of the condition of municipalities across the country and serves as a timely reminder that while some administrative improvements have been achieved, the broader objectives of accountable governance, financial sustainability and quality service delivery remain elusive for many municipalities.

Public Interest SA welcomes the significant reduction in disclaimed audit opinions, the improvement in the timely submission of financial statements, and the increasing use of the Auditor-General's expanded powers to hold public officials accountable. These developments demonstrate that progress is possible when oversight institutions are empowered and supported.

However, the report also reveals a deeply concerning reality. Too many municipalities continue to struggle with poor governance, weak financial controls, procurement irregularities, deteriorating infrastructure and inadequate consequence management. The findings suggest that South Africa's local government crisis is increasingly one of institutional capability and accountability rather than a lack of legislation or policy.

The Auditor-General's report highlights widespread non-compliance with key legislative requirements, persistent irregular expenditure, weak performance management systems and an alarming inability to address recurring audit findings. Of particular concern is the continued failure by many municipal leaders to implement corrective measures and enforce accountability where wrongdoing, negligence or maladministration are identified.

The report further underscores the devastating impact of poor governance on service delivery. Delayed infrastructure projects, inadequate maintenance of critical assets, environmental compliance failures and growing financial distress directly affect the daily lives of millions of South Africans who rely on municipalities for water, sanitation, electricity, roads and other essential services.

Public Interest SA is particularly concerned by the report's findings relating to procurement and contract management failures, which continue to account for a significant portion of irregular expenditure. Public resources intended to improve communities are too often undermined by weak controls, poor planning, inadequate oversight and, in some instances, indicators of fraud and corruption.

The financial health of many municipalities also remains precarious.

The growing number of unfunded budgets, mounting debt, poor revenue collection, escalating water and electricity losses, and increasing fruitless and wasteful expenditure point to a sector that is under severe financial pressure and in urgent need of reform.

The findings concerning metropolitan municipalities are equally troubling. South Africa's metros are responsible for serving millions of residents and managing a substantial share of local government expenditure. Their continued regression in audit outcomes, governance standards and financial performance should be a matter of national concern.

Public Interest SA welcomes the Auditor-General's continued use of material irregularity processes, referrals to law enforcement agencies and the issuing of certificates of debt where warranted. These measures send an important message that public office carries responsibilities and that accountability cannot remain optional.

"As the country prepares for the next local government elections, we call on political parties to prioritise integrity, competence and ethical leadership in the selection of candidates for municipal office. The quality of leadership elected to councils will play a decisive role in determining whether municipalities can reverse years of decline and restore public confidence," says Tebogo Khaas, chairperson of Public Interest SA.

"We further call on mayors, councillors, municipal managers, provincial governments and national departments to act decisively on the Auditor-General's recommendations. South Africans deserve municipalities that are transparent, financially sustainable and capable of delivering quality services consistently and efficiently," added Khaas.

Public Interest SA remains committed to promoting accountability, ethical governance, transparency and active citizen participation. We will continue to monitor developments in local government and advocate for stronger consequence management, improved oversight and the responsible stewardship of public resources.

The Auditor-General's report should not merely be viewed as an audit document. It is a call to action for government, civil society, business and citizens alike. The time for acknowledging problems has long passed. What is now required is leadership, accountability and sustained action.

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Media Enquiries:

Bagaetsho Oteng Media, Liaison Officer, Public Interest SA

Email: bagaetsho@publicinterest.org.za Website: www.publicinterest.org.za