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AUDITOR-GENERAL TSAKANI MALULEKE TABLED THE CONSOLIDATED REPORT ON LOCAL GOVERNMENT AUDIT OUTCOMES 2024-25 ON 24 JUNE 2026
Issued by Christo van der Rheede on behalf of the FW de Klerk Foundation on 25/06/2026
Overall State: The 2024-25 Auditor-General report reveals that local government has failed to achieve a turnaround, resulting in unreliable services and failing infrastructure.
Stagnant Outcomes: 57% of municipalities maintained their poor 2020-21 audit outcomes, while 15% regressed.
Rare Clean Audits: Only 15% of municipalities achieved a clean audit, representing a mere 8% of the total expenditure budget.
Failing Metros: None of the metropolitan municipalities achieved a clean audit, despite managing 54% of the total budget and serving 46% of the country’s households.
Severe Financial Distress: 45% of municipalities adopted unfunded budgets, committing to R288.17 billion they do not have.
Flawed Reporting: 76% of municipalities submitted financial statements containing material misstatements.
Massive Revenue Losses: Infrastructure neglect caused R14.73 billion in water losses and R21.63 billion in electricity losses.
Irregular Expenditure: Municipalities incurred R145.21 billion in irregular expenditure since 2021-22, driven almost entirely (87%) by procurement and contract non-compliance.
Zero Accountability: Governance failures are pervasive, with councils frequently writing off irregular expenditure instead of investigating fraud indicators or enforcing consequences.
Wasted Consulting Fees: Despite spending R1.61 billion on financial consultants, 61% of those municipalities still submitted flawed financial statements due to severe internal skills gaps.
Free State & North West: Both provinces recorded a 100% rate of material non-compliance across all municipalities. These provinces also struggle with the highest average number of compliance findings.
Financial Distress: North West (59%) and Free State (52%) have the highest percentages of municipalities with “unfavourable” financial health ratings.
Northern Cape: Follows closely with 97% of municipalities reporting material non-compliance findings.
Gauteng: Notable for significant regressions in audit outcomes among its metropolitan municipalities, severely impacting service delivery for a large portion of the population.
Western Cape: Continues to demonstrate the strongest adherence to legislation, while the Free State and North West remain the most critically challenged.
Available at: Audit 2024-25
FW DE KLERK FOUNDATION CALLS FOR TRANSPARENT MUNICIPAL RECOVERY PLANS AMID R400 BILLION WATER INFRASTRUCTURE BACKLOG
South Africa faces an estimated R400 billion backlog to repair and upgrade ageing water infrastructure across 107 water services authorities. The FW de Klerk Foundation calls for transparent, municipality-specific recovery plans with clear deadlines, measurable milestones and accountable authorities. Reliable access to water is a constitutional right, and infrastructure spending must translate into measurable improvements in service delivery.
A VISIT TO THE SOUTH AFRICAN CHILDREN’S HOME
On Tuesday, 20 October2026, a delegation of the FW de Klerk Foundation comprising of Deputy Chairperson Christina Teichmann and Legacy Manager Brenda Steyn visited the SA Children’s Home in Gardens, Cape Town, where they met with Nina Crawford and Dico van Eeden to learn more about the home’s history and mission.
RED FLAG: NO OPPORTUNITY FOR PUBLIC COMMENTS ON FINAL VERSION OF ELECTORAL REGULATIONS.
The FW de Klerk Foundation has raised concerns about a change introduced into the final Municipal Electoral Regulations that was not included in the draft published for public comment. The Foundation argues that the addition of a sworn-statement requirement for election objections raises important questions about meaningful public participation, electoral transparency, and compliance with Constitutional Court principles governing post-consultation amendments.