North West audit outcomes improve, but no clean sweep

· Citizen

North West municipalities have shown marginal progress in their latest audit outcomes, but service delivery remains stubbornly stagnant.

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Auditor‑general (AG) Tsakani Maluleke’s recently released report reveals that while more councils managed to improve their financial compliance, not a single municipality secured a clean audit.

AG report shows North West audit progress but no clean audits

Analysts warn that the modest gains are overshadowed by persistent failures in water, sanitation and road infrastructure, leaving communities frustrated despite years of interventions.

Although none of the 22 municipalities achieved a clean audit, the number of municipalities that received unqualified with findings increased from three to six and qualified with findings moved down from 13 to 12.

While adverse with findings remained unchanged at three, disclaimed with findings moved down from three to one. There is no municipality with outstanding outcome.

North-West University’s senior academic and expert in local government and public administration, Arthur Shopola, acknowledged the improvement in the audit outcomes while noting that service delivery challenges continue to affect municipalities.

“There are two ways to look at the latest report by the AG,” said Shopola.

“There are slight improvements, especially when you look at the fact that only six municipalities managed to get six unqualified audits with findings, this is an achievement compared to the previous financial years. There is only one municipality with only one disclaimed outcome.

Six North West municipalities earn unqualified with findings

“The second way to view this report should worry us when you look at the fact that there is not a single municipality which scored a clean audit. The level of service delivery and development is so traumatising. You talk about water, sanitation and roads. It is actually discouraging.”

DA North West leader Freddy Sonakile blamed a lack of political will as the province has not achieved a single clean audit.

“The 2024-25 audit outcomes confirm what communities experience daily: failing municipalities, collapsing infrastructure and a government that has simply run out of excuses,” said Sonakile.

“Despite years of interventions, the reality is that this is not a capacity problem, it is a lack of political will.”

He was referring to multiple intervention measures by the provincial government such as the 2018 decision to place eight municipalities under administration: Kagisano-Molopo, Ramotshere Moiloa, Ditsobotla, Kgetlengrivier, Maquassi Hills, Naledi, Mahikeng and Ngaka Modiri Molema.

In 2020, at least 13 municipalities in the North West were placed under Section 139.

Multiple intervention measures

Ditsobotla remained the only disclaimed municipality in the province. It was forced to go into by-elections less than a year after the 2021 local government elections due to ANC infighting, which left the council divided. A national intervention was implemented by National Treasury.

According to the AG report, all 22 municipalities spent R948.7 billion on financial reports.

The municipalities used R416.5 million to outsource the skills that they do not have. This is in addition to the R691.2 million which was used by the financial units of municipalities. Almost R1 billion was used to manage the financial reports of the municipalities.

Shopola criticised the increase in the use of consultants.

“One of the things that bothers me is the levels at which our municipalities continue to use consultants, even when they see that the financial reports still come with mistakes, even with the assistance of consultants,” he said.

“Our municipalities have now exceeded the bounds in terms of the use of consultants. They bleed millions and gain very little. It should be concerning as it highlights the capacity crisis.”

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