However, the number of municipalities that achieved a clean audit dropped from 41 in the previous financial year to 39. The report highlights that no metropolitan municipality achieved a clean audit in the 2024-25 financial year. The SAHRC is concerned by this situation as metropolitan municipalities are crucial in fostering inclusive growth and socio-economic development. The SAHRC is further concerned that no municipality in the North West and Free State Provinces has achieved a clean audit dating as far back as the 2020-21 financial year.

The use of financial consultants at a cost of R1,61 billion with no meaningful material change in the audit outcomes of municipalities remains a serious concern for the SAHRC. The SAHRC calls for the skills and vacancy gap in municipalities to be closed. Further, where consultants are utilised, mechanisms to ensure that skills are transferred to municipal staff should be instilled. The SAHRC is also concerned by the high levels of financial wastage in municipalities. The report records R6,36 billion in fruitless and wasteful expenditure. Every rand spent fruitlessly or wastefully represents potential money lost in addressing poverty alleviation and fostering socio-economic redress which lies at the heart of South Africa’s constitutional order.

The SAHRC reiterates that without proper financial management and the instilling of fiscal discipline and consequence management, wastage of financial resources will continue. This coupled with a deteriorating level of service delivery and the inability to cushion marginalised and impoverished community members. The SAHRC is therefore encouraged that the draft White Paper on Local Government proposes various reforms tackling among others wastage of funds. In its submission, the SAHRC has called for the final White Paper to strengthen enforceable accountability systems, rights-based budgeting obligations, transparent procurement mechanisms, meaningful public participation standards, and measurable consequence management frameworks.

The SAHRC commends the AGSA for the continued commitment to ensuring accountability in the management of financial resources of the state. The SAHRC will continue to utilise its mandate to ensure that municipalities are adequately capacitated to enable them to effectively deliver on their constitutional and statutory mandates. The SAHRC urges government across all spheres to intensify efforts to support and strengthen municipalities in service delivery.

Ends