Auditor-General Tsakani Maluleke on Wednesday presenting the consolidated general report on local government audit outcomes for 2024-25.

The City of Johannesburg is facing mounting financial, governance and service delivery challenges that threaten its ability to fulfil its role as South Africa’s economic powerhouse, Auditor-General Tsakani Maluleke has warned.

The warning comes in the Auditor-General’s latest report on local government audit outcomes on Wednesday, which paints a troubling picture of deteriorating financial management, weak accountability and declining institutional capacity within the country’s largest metropolitan municipality.

Johannesburg’s standalone audit regressed from an unqualified audit opinion to a qualified audit opinion in the 2024/25 financial year after the city failed to correct material errors identified during the audit process.

While the city’s consolidated audit outcome, which includes its municipal entities, remained unqualified with findings, the regression in the core administration raised concerns about the municipality’s financial governance.