Nine Gauteng municipalities fail to get clean audits

By Palesa Matlala

• Midvaal and the West Rand District Municipality are the only two Gauteng municipalities to receive clean audits for the second year in a row.

• Finance MEC Nkululeko Dunga says most municipalities are still struggling with poor financial management, weak controls and governance failures.

Only two of Gauteng’s 11 municipalities managed to receive clean audits for the second year in a row.

Midvaal Local Municipality and the West Rand District Municipality were once again the only municipalities to achieve clean audits in the 2024/25 financial year.

On Sunday, Gauteng Finance MEC Nkululeko Dunga released the province’s latest consolidated municipal audit report.

The report paints a worrying picture of how municipalities are managing public money.

Dunga said financial management has gone backwards instead of improving.

“There has been an overall regression in audit opinions for Gauteng municipalities,” he said.

According to the report:

• Two municipalities received clean audits with no findings.

• Six municipalities received unqualified audits with findings, meaning their financial statements were acceptable but auditors found problems that still need to be fixed.

• Three municipalities received qualified audits, showing serious weaknesses in financial reporting and internal controls.

A clean audit is regarded as the highest audit outcome because it means a municipality’s financial statements are accurate, proper records have been kept and there are no material findings on performance or compliance with the law.

Although Gauteng remains South Africa’s economic hub, many municipalities continue to struggle with poor financial controls, irregular spending, weak governance and service delivery challenges.

The report is expected to increase pressure on municipal leaders ahead of the local government elections later this year.

Meanwhile, Build One South Africa’s Cape Town mayoral candidate, Roger Solomons, says clean audits alone should not be used to judge whether a municipality is doing a good job.

Speaking after being announced as the party’s mayoral candidate for Cape Town, Solomons said residents care more about whether basic services are reaching their communities.

“It’s definitely important, but it does not define good governance,” he said.

“We can reconcile the books and get clean audits, but that does not always translate into the lived experience of people.”

He said municipalities should be judged not only on their financial records but also on service delivery, infrastructure, safety and whether communities receive equal treatment.

The latest audit report is expected to become a major talking point as political parties prepare for the upcoming local government elections, with voters expected to closely examine how municipalities have managed public funds.

Pictured above: Gauteng Finance MEC Nkululeko Dunga says only two municipalities received clean audits as financial management continues to decline across the province.

Image source: Gauteng Provincial Government