The latest Auditor-General’s report for the 2022-23 financial year reveals that the Western Cape has outperformed all other provinces, securing the most clean audits among municipalities.
Story Summary:
- The Western Cape achieved 22 clean audits, the highest among all provinces.
- The City of Cape Town is the only metro in South Africa to receive a clean audit.
- Other provinces, including Gauteng and KwaZulu-Natal, had significantly fewer clean audits.
Western Cape municipalities lead with most clean audits in South Africa
The Western Cape stands out as a beacon of good governance in the 2022-23 Auditor-General’s report, with 22 municipalities in the province achieving clean audits.
This marks the highest number of clean audits recorded by any province in South Africa, showcasing the Western Cape’s commitment to sound financial oversight and transparency.
The City of Cape Town, in particular, distinguished itself as the only metropolitan municipality in the country to receive a clean audit.
In comparison, other provinces lagged behind.
Gauteng, despite being the economic hub of the country, saw only Midvaal Local Municipality secure a clean audit.
Similarly, KwaZulu-Natal, Mpumalanga, the Eastern Cape, and the Northern Cape had a few municipalities that achieved clean audits, but their numbers were far lower than those of the Western Cape.
Clean audits are crucial as they indicate that a municipality has managed its finances responsibly, complied with legislation, and delivered services without any significant financial irregularities.
Key highlights from the Auditor-General’s consolidated local government report
The Auditor-General’s consolidated report for the 2022-23 financial year provides a detailed assessment of the financial health and governance of South Africa’s municipalities.
Here are the key highlights:
- Overall Audit Outcomes: Out of all the municipalities audited, only 34 (13%) achieved clean audits.
- Compliance Issues: 86% of municipalities were found to have material compliance findings, indicating widespread issues with adhering to financial regulations and governance practices.
- Financial Health Challenges: Many municipalities are struggling financially due to poor revenue collection, unchecked expenditure, and deteriorating infrastructure. These issues have led to delays and poor quality in infrastructure projects.
- Material Irregularities: The report identified material irregularities leading to the recovery or prevention of approximately R924.1 million in financial losses. This indicates ongoing issues with fraud and financial misconduct in local governments.
- Incomplete Audits: As of March 2024, 10 municipalities had not completed their audits, largely due to delays in submitting financial statements or missing documentation.
