GAUTENG MUNICIPAL AUDITS REGRESS AS TREASURY SOUNDS ALARM FROM INFORMAL SETTLEMENT

MAKAUSE INFORMAL SETTLEMENT — In a deliberate departure from traditional boardroom briefings, Gauteng Finance MEC Dunga has delivered a scathing review of the province's 2024/25 municipal audit outcomes directly from the Makause Informal Settlement. The MEC stated the location was chosen to illustrate the harsh reality that "material irregularities" and "qualified audit opinions" translate directly into failed service delivery for residents on the ground.

The latest report from the Auditor-General reveals an overall regression in financial governance across Gauteng’s 11 municipalities, sparking calls for urgent structural reforms and tougher accountability measures.

Metros Lead Financial Slippage

Gauteng's two largest metropolitan municipalities, the City of Johannesburg and the City of Ekurhuleni, both regressed from unqualified to qualified audit opinions during this cycle.

City of Johannesburg: Accumulated R6.55 billion in irregular expenditure, R6.81 billion in unauthorized expenditure, and R400 million in fruitless and wasteful expenditure over a four-year period. The audit flagged 11 material findings and noted severe going-concern pressures alongside a Moody's credit rating downgrade.
City of Ekurhuleni: Reached R620 million in irregular expenditure over four years, alongside R400 million in unauthorized expenditure incurred in a single year. The Auditor-General flagged three separate material irregularities involving the pollution of public water sources and exposed price collusion within an ICT service provider panel costing the metro R6.99 million extra. Ekurhuleni has formally admitted to liquidity challenges, taking an average of 175 days to pay suppliers.
City of Tshwane: Maintained a qualified status but remains the highest accumulator of irregular funds in the province, amassing R12.17 billion in irregular expenditure, R5.22 billion in unauthorized expenditure, and R3.61 billion in fruitless and wasteful expenditure over four years.

A combined total of R45.92 billion in irregular expenditure has been recorded across Gauteng municipalities over the course of the current administration.

Pockets of Excellence and Rebounds

Despite the widespread regressions, the Treasury commended the Midvaal Local Municipality and the West Rand District Municipality for sustaining clean audit opinions for 13 and two consecutive years, respectively.

Mogale City, which maintained an unqualified opinion with findings, was singled out for achieving a zero opening balance on unauthorized, irregular, fruitless, and wasteful expenditure for the financial year. However, MEC Dunga clarified that past misspent funds must still be recovered. Meanwhile, Emfuleni Local Municipality received a critical lifeline with the write-off of its historical Eskom debt, though the Treasury warned this must be viewed as a second chance rather than an operational achievement.

The Human Cost and Treasury Intervention

The media statement drew a direct line between collapsing financial controls and the physical safety of public servants. The Treasury honored the memories of internal whistleblowers and compliance officers—including Ekurhuleni officials Mpho Mafole and Simnikiwe Mapini—who lost their lives fighting corruption, noting that compliance is becoming increasingly hazardous for honest state workers.

"Anger at governance failure must find its expression through accountability, through the ballot, through organized community voice, never through arson," MEC Dunga stated, firmly condemning the recent torching of the Lesedi Local Municipality Mayor's residence.

To address these systemic vulnerabilities, the Gauteng Provincial Treasury has launched an aggressive Programme of Action. Immediate measures include introducing a digital Auditor-General's Findings Tracker to monitor compliance in real time, intensifying the Annual Financial Statements (AFS) Accelerator Programme to catch accounting errors early, and conducting targeted oversight visits to stalled infrastructure developments, such as the vandalized R229.68 million Clayville Extension 45 social housing project.

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Monday, 6 July 2026