The City of Cape Town has regressed from its previous clean audit status due to supply chain management and procurement-related non-compliance, resulting in an unqualified audit opinion with findings.
Auditor-General Tsakani Maluleke has raised serious concerns about the financial health and governance of South Africa’s eight metropolitan municipalities, describing a pattern of regression in audit outcomes, financial management and service delivery.
Presenting the 2024/25 consolidated general report on local government audit outcomes to Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs on Wednesday, Maluleke said metros required particular attention as they account for nearly 54% of local government expenditure and serve about 40% of the country’s population and households.
“On the whole, metros are regressing not just on audit outcomes, but importantly, on financial health, but also on service delivery,” she said.
Maluleke noted that while local municipalities, intermediate cities and district municipalities had shown overall improvement, metropolitan municipalities were moving in the opposite direction.
