The Auditor-General’s latest report on local government paints a troubling picture of municipalities increasingly relying on outside expertise while failing to achieve meaningful improvements in financial reporting and accountability.
South African municipalities spent R1.61 billion on financial reporting consultants in the 2024/25 financial year despite widespread financial distress, unfunded budgets and deteriorating governance, Auditor-General Tsakani Maluleke has revealed.
The Auditor-General’s latest report on local government paints a troubling picture of municipalities increasingly relying on outside expertise while failing to achieve meaningful improvements in financial reporting and accountability.
According to the report, 225 municipalities across the country hired financial reporting consultants during the year under review, collectively spending R1.61bn. The figure represents a sharp increase from a decade ago, when 179 municipalities spent R590 million on consultants.
The spending comes at a time when municipal finances remain under severe strain. Only 35% of municipalities were assessed as having good financial health, while 40% were classified as financially concerning and 25% as unfavourable.
