The portfolio committee on cooperative governance and traditional affairs in Gauteng plans to host public hearings to deal with the burning issue of non-performing municipalities.
On Friday, committee chairperson Mzi Khumalo convened with the Auditor-General of South Africa (AGSA) to discuss the dismal performance of municipalities in the province.
The meeting follows after the committee’s concern over the poor performance of Gauteng municipalities in audit reports by the AGSA.
Khumalo expressed deep concern over the pervasive non-compliance and the ongoing financial mismanagement in municipalities.
“The committee emphasised the need for municipalities to adhere strictly to legislative requirements and improve their financial and operational management to ensure better service delivery to residents.
“To address some of these issues, the committee committed to convening public hearings in struggling municipalities. These hearings will serve as a platform for engaging with local leaders, stakeholders, and the public to identify solutions and hold municipal officials accountable for their performance,” said Khumalo.
“The committee also reaffirmed its commitment to rigorous oversight and will closely monitor the implementation of corrective actions as recommended by the AGSA; and ensure that consequence management is implemented where required,” he said.
Khumalo stated that AGSA’s presentation highlighted key performance issues in municipalities, that require immediate action to turn the fortunes around.
“Widespread non-compliance with legislation, where several municipalities were found to be in breach of procurement laws, with uncompetitive and unfair procurement processes leading to irregular expenditure.
“The AGSA identified R7.533 billion in irregular expenditure, largely due to non-compliance with procurement regulations,” he said.
Khumalo also mentioned that the audit outcomes revealed significant financial mismanagement, with an increase in unauthorised, irregular, and fruitless expenditure across municipalities, amounting to R9.879 billion in irregular expenditure, R5.154 billion of unauthorised spending, and R1.381 billion in fruitless and wasteful expenditure.
This mismanagement is directly linked to inadequate financial controls and oversight.
“Poor service delivery and project implementation is another serious concern, where delays in infrastructure projects due to poor planning and monitoring were a recurring issue negatively impacting service delivery.
“The AGSA noted that these delays are exacerbated by weak internal controls and a lack of accountability, which continue to undermine the effectiveness of municipal operations,” he said.
Khumalo also stated that many municipalities are struggling with financial sustainability, with the AGSA reporting that 76% of municipal debt is not recoverable.
“Additionally, several municipalities have been passing unfunded budgets, further jeopardising their financial stability and ability to provide essential services.”
