Empty promises — why SA local government fails the gogo test

The Auditor-General's latest report has exposed a systemic failure in South Africa's local government, as municipalities continue to gamble on unfunded budgets, leaving essential services and communities behind. The report, published in June, details the audit outcomes for 2024-25 financial year, which is the same period for the councils that will be voted on in the upcoming 4 November elections. Despite the Auditor-General's report being free and online, it received minimal coverage, with the news quickly moving on.

Municipalities are required to submit annual financial statements, which are then audited by an independent auditor. The audit checks for accuracy, adherence to rules, and honesty in reporting. There are four possible outcomes: unqualified (answers are right and the child followed the rules), qualified (two pages are missing), adverse (the book is complete but the answers are wrong), and disclaimed (the dog ate the book and the auditors cannot form any view).

Out of all municipalities, 15% achieved a clean audit, accounting for 8% of the total expenditure budget. The remaining 85% submitted financial statements containing material misstatements, meaning the figures were wrong and corrected only because auditors found the errors. This year alone, municipalities spent R1.61-billion on consultants to help produce credible statements, yet many still could not do so.

The report highlights the neglect of infrastructure, with municipalities spending R14.73-billion on water and R21.63-billion on electricity. In a country where people still queue at taps with containers, the scale of the problem becomes apparent. The Auditor-General's report serves as a stark reminder of the challenges facing South Africa's local government and the urgent need for change.