Years of audits, intervention programmes and government support have failed to reverse the decline of Northern Cape municipalities, according to a new oversight report tabled in the provincial legislature.
The report identifies Thembelihle, Renosterberg, Kai !Garib, !Kheis, Dawid Kruiper, Ubuntu, Hantam, Tsantsabane, Kamiesberg and Sol Plaatje among the municipalities.
The final joint committee: MFMA municipal oversight report, tabled in the Northern Cape Provincial Legislature in Kuruman on July 2, paints a picture of municipalities struggling with recurring audit findings, vacant critical posts, aging infrastructure, weak financial controls and delayed accountability despite repeated intervention by oversight institutions.
The report, which was tabled after oversight visits between May 18 and May 29, examined municipal governance, financial sustainability, audit out-comes, service delivery and
implementation of previous recommendations.
One of the committee’s central findings is that support alone has not translated into improvement. The report notes that municipalities continue to receive assistance from the Auditor-General of South Africa, Northern Cape Provincial Treasury, the Department of Cooperative Governance, Human Settlements and Traditional Affairs and the South African Local Government Association.
But it says the impact of the interventions must now be measured against results in governance, audit outcomes, financial sustainability and service delivery performance.
The report identifies institutional capacity as one of the biggest obstacles. Most municipalities reported challenges relating to the filling of critical vacancies, particularly in technical services, engineering, infrastructure management, supply chain management and finance units.
The committee found that skills shortages continue to affect project implementation, infrastructure maintenance, compliance management and service delivery performance. Municipalities increasingly rely on consultants because they lack permanent internal capacity.
While municipalities continue spending on infrastructure projects, the “maintenance budgets are often insufficient to address aging infrastructure, rehabilitation requirements and operational sustainability”.
The consequences are visible. “Inadequate preventative maintenance contributes to water losses, service interruptions, infrastructure deterioration and increased future replacement costs.”
Municipalities continue struggling with “debt collection, billing accuracy, limited own-revenue generation and increasing operating costs”.
“Realistic budgeting, effective expenditure management and strengthened revenue enhancement initiatives are critical to maintaining financial sustainability,” the report said.
Recurring audit findings remain widespread. “The implementation of audit action plans is not always sufficiently monitored, and corrective measures often fail to address underlying root causes.”
The committee also highlighted weaknesses in accountability.
It defines consequence management as the investigation of financial misconduct, non-compliance and governance failures, followed by disciplinary or other corrective action where responsibility is established.
“Consequence management remains one of the weakest areas of municipal governance.
“Despite audit findings and identified irregularities, disciplinary processes are often delayed or not finalised within reasonable timeframes.”
It warned that “the absence of visible accountability contributes to recurring non-compliance and weakens public confidence in municipal institutions”.
Irregular expenditure remains unresolved in several municipalities. “Historical balances continue to affect municipal financial management and governance credibility.”
The report concludes that municipalities require “stronger leadership, improved accountability, accelerated implementation of corrective measures and enhanced oversight by management and council”.
Northern Cape legislature speaker Newrene Klaaste did not respond to questions.
- Despite years of audits, intervention programs, and government support, Northern Cape municipalities continue to decline, struggling with governance, financial management, and service delivery issues.
- Key challenges include vacant critical posts, skills shortages, aging infrastructure with insufficient maintenance budgets, and increasing reliance on consultants.
- Municipalities face ongoing problems with debt collection, inaccurate billing, limited revenue generation, and rising operational costs, impacting financial sustainability.
- Recurring audit findings persist due to weak implementation of corrective action plans and flawed accountability systems, with delayed disciplinary processes undermining consequences management.
- The report calls for stronger leadership, improved accountability, faster corrective action, and enhanced oversight to restore municipal financial management and public trust.
Years of audits, intervention programmes and government support have failed to reverse the decline of
implementation of previous recommendations.
One of the committee’s central findings is that support alone has not translated into improvement.
But it says the impact of the interventions must now be measured against results in governance, audit outcomes, financial sustainability and service delivery performance.
While municipalities continue spending on infrastructure projects, the “maintenance budgets are often insufficient to address aging infrastructure, rehabilitation requirements and operational sustainability”.
Municipalities continue struggling with “debt collection, billing accuracy, limited own-revenue generation and increasing operating costs”.
“Realistic budgeting, effective expenditure management and strengthened revenue enhancement initiatives are critical to maintaining financial sustainability,” the report said.
It defines consequence management as the investigation of financial misconduct, non-compliance and governance failures, followed by disciplinary or other corrective action where responsibility is established.
“Consequence management remains one of the weakest areas of municipal governance.
“Despite audit findings and identified irregularities, disciplinary processes are often delayed or not finalised within reasonable timeframes.”
It warned that “the absence of visible accountability contributes to recurring non-compliance and weakens public confidence in municipal institutions”.
Irregular expenditure remains unresolved in several municipalities. “Historical balances continue to affect municipal financial management and governance credibility.”
