The Gauteng government has called on municipalities to hold financial officers accountable for non-compliance after only two out of eleven municipalities received clean audits for the 2023/2024 financial year.
This announcement was made during a media briefing on Tuesday, where the Gauteng government presented the municipal audit outcomes. While the overall results remain concerning, provincial officials expressed a small sense of optimism that none of the municipalities regressed from the previous year’s performance.
Audit Results and Non-Compliance Issues
For the 2023/2024 financial year, there were 19 recorded instances of financial non-compliance across Gauteng municipalities. The majority of these issues were linked to unauthorized, irregular, and wasteful expenditure—problems that have long plagued municipal governance across South Africa.
Despite these persistent challenges, Gauteng Finance and Economic Development MEC, Lebogang Maile, emphasized that the lack of regression was a positive sign. However, he acknowledged that much work remains to be done to improve financial oversight and accountability.
Strengthening Consequence Management Systems
MEC Maile stressed the need for municipalities to strengthen their consequence management systems to ensure financial misconduct is addressed effectively. He highlighted the importance of existing disciplinary boards and urged municipalities to make better use of these structures.
“It’s important to state that in previous financial years, disciplinary boards were established to deal with cases of financial misconduct,” Maile said. He reiterated that council speakers, municipal public accounts committees (MPACs), and other council committees must play a more proactive role in investigating financial irregularities.
Maile also emphasized that these committees need to foster a culture of good governance by promptly addressing cases of unauthorized, irregular, fruitless, and wasteful expenditure. He made it clear that ensuring the proper functioning of disciplinary boards is critical to reducing future instances of non-compliance.
Municipalities That Performed Well
While only two municipalities received clean audits, the government refrained from naming them during the briefing. However, the provincial government expressed hope that these municipalities could serve as examples of financial best practices for others to follow.
Clean audits typically indicate sound financial management, accurate record-keeping, and adherence to public finance regulations. The goal for the Gauteng government is to ensure more municipalities meet these high standards in the coming financial years.
Irregular Expenditure and Further Updates
While Maile did not disclose the exact figure for unauthorized and wasteful expenditure during the 2023/2024 financial year, he confirmed that this information will be shared at a later date. The figure is expected to provide further insight into the financial state of Gauteng’s municipalities and highlight the scale of the problems that need to be addressed.
Previous reports have shown that irregular expenditure can run into billions of rand, draining resources that could have been allocated to service delivery and community development projects. The government’s commitment to transparency in releasing the figures will be closely watched by both the public and civil society groups.
Accountability Measures Moving Forward
MEC Maile’s call for stronger accountability measures comes at a time when public trust in local government is at an all-time low. The persistent issues of financial mismanagement, coupled with a perceived lack of accountability, have fueled public frustration.
To address this, Maile reiterated the importance of empowering disciplinary boards and municipal oversight committees to take decisive action. He also called for more training and capacity-building initiatives to ensure that municipal staff are equipped to comply with financial regulations and manage public funds effectively.
Path to Improvement
While the Gauteng government remains concerned about the audit outcomes, its leadership seems determined to turn the tide. By focusing on accountability, consequence management, and fostering a culture of good governance, the province hopes to see improved audit outcomes in the next financial year.
For now, all eyes will be on the municipalities to see whether they implement the necessary changes and take meaningful action against those responsible for financial misconduct. With the Gauteng government promising transparency and further updates, residents will be keenly watching how their local leaders respond to the ongoing financial challenges.
