Auditor-General Powers Key to Tackling Municipal Mismanagement, Says Committee Chair

Cape Town, 9 June 2025 – The Chairperson of the Standing Committee on the Auditor-General, Mr. Wouter Wessels, has raised concern over the persistent failures in local government service delivery, citing financial mismanagement, corruption, and legislative non-compliance as critical challenges undermining economic development and employment.

Speaking at a Governance Cluster media briefing in Parliament, Wessels highlighted the severe deterioration of infrastructure at the municipal level—including water treatment facilities and roads—attributed largely to inadequate capital expenditure and poor financial oversight.

He noted that the 2018 amendment to the Public Audit Act, which granted the Auditor-General of South Africa (AGSA) enhanced powers to act on material irregularities, has been instrumental in addressing these issues. Since the amendment, the AGSA has identified 285 material irregularities, representing an estimated R8.74 billion in financial losses, of which R1.32 billion has been either recovered or prevented.

Wessels emphasised that municipalities’ failure to submit annual financial statements on time hampers the AGSA’s oversight function and undermines accountability. He said the committee, in coordination with Parliament’s committees on Cooperative Governance (COGTA), SCOPA, and Finance, is working to address this non-compliance.

He further warned that municipal debt to the AGSA—now exceeding R1 billion—poses a serious risk to the institution’s ability to carry out its mandate. Discussions are ongoing with National Treasury to find a resolution.

Finally, Wessels stressed the importance of improving law enforcement follow-through on cases referred by the AGSA. He confirmed that the committee is in discussions with the Special Investigating Unit (SIU) and other agencies to ensure that consequences are enforced in instances of financial misconduct.

For the full briefing audio, visit: iono.fm/e/1564392