'Broken promises': AG slams failing municipalities for leaving citizens in limbo

Speaking at the Local Government Indaba in Midrand on Thursday,  Maluleke said the gathering could not be treated as symbolic, but must be seen as a “moment of reckoning” for the state of service delivery.

“This is not just a ceremonial milestone. It is a moment of reckoning, a moment to ask: What have we built? What is broken? And what must now become?”

Maluleke reminded delegates that since 1994, local government has been the face of South Africa’s democratic dividend, where the promise of a better life is either fulfilled or deferred. 

She listed undeniable progress, including more than 5 million subsidised houses, over 80% household access to water, electricity, and sanitation, and over R500 billion already mobilised for infrastructure.

But she said these gains are undermined by weak governance, poor financial management, and unethical leadership.

"In the 2023/24 municipal audit cycle, only 16% of municipalities (41 councils) received clean audits.

"R31 billion in unauthorised expenditure was recorded. Water and electricity losses amounted to R37 billion. Municipalities spent R1.47 billion on consultants, often with little value delivered.

“These are not just numbers. They are missed opportunities. They are broken promises. They are lives left in limbo,” Maluleke said.

The Auditor-General also revealed that her office has identified over R8.7 billion in financial losses through the material irregularity process since 2019, but less than half of those cases have been resolved.

She also warned of a human resource and capacity crisis.

“Fifty municipalities had vacant CFO positions in 2023/24. Two hundred-and-nineteen municipalities relied on consultants for financial reporting, yet many still submitted poor-quality statements. Audit committees and internal audit units were ineffective in more than 80% of municipalities.

“We must professionalise local government. We must attract and retain skilled professionals. We must build municipalities where engineers, planners, and financial managers want to work and are empowered to lead,” she urged.

At the same time, Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa told the indaba that municipalities remain the backbone of democratic governance and service delivery, but their failures reflect a deep culture of weak accountability.

“Since the last summit in 2022, we’ve implemented the District Development Model to build resilient, sustainable, and connected communities. Over the next two days, we’ll assess progress, challenges, and reimagine our nation’s future.”

Hlabisa said the latest audit outcomes show slight improvement but reinforce long-standing failures. 

"While 41 municipalities achieved clean audits, another 99 municipalities received unqualified opinions with findings, and 16 municipalities received adverse opinions. Several municipalities, particularly in the Free State, have still not submitted financial statements for audit.

"In addition, 20% of municipalities face uncertainty about their ability to continue operating as going concerns," he said.

Both leaders agreed that the culture of local government must shift from compliance on paper to accountability in practice.

Maluleke called for a renewed social compact between government and citizens.

“We must move from a culture of tolerance for wrongdoing and misconduct to one of intolerance. Ethics must be the heartbeat of every municipality. Consequence management must be swift, fair, and consistent.”

READ MORE