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 continued to rely heavily on external financial consultants in the 2024/25 financial year, spending R1.61 billion even as their financial positions deteriorated and governance challenges deepened, says Auditor-General Tsakani Maluleke.
According to Business Report, the Auditor-General’s latest local government report highlights a growing dependence on outside expertise, without corresponding improvements in financial reporting or accountability outcomes across municipalities.
In total, 225 municipalities appointed consultants during the period under review, up significantly from 179 a decade earlier, when spending stood at R590 million.
The report comes against a backdrop of widespread financial instability, with only 35% of municipalities assessed as financially healthy. A further 40% were flagged as financially concerning, while 25% were deemed unfavourable.
