For six consecutive years, not a single municipality in the Free State has received a clean audit, according to Auditor-General Tsakani Maluleke.
Among the 11 municipalities in financial distress is the struggling Dihlabeng Local Municipality. In her office’s 2021/22 local government audit, Maluleke revealed that no Free State municipality achieved a clean audit opinion in the past six years. The financial health of these municipalities has continued to worsen, with 11 of them, representing 73%, expressing significant doubt about their ability to meet financial obligations.
Irregular expenditure remains a significant issue, with the province’s irregular expenditure totaling R1.57 billion in 2021/22, which is 7% of the total budget of R22.43 billion. The closing balance for irregular expenditure in the province also rose from R9.18 billion in 2020/21 to R11.27 billion in 2021/22.
Despite plans for basic service delivery, municipalities failed to meet most of their targets for electricity, water, and sanitation due to poor financial and project management. This shortfall has affected the quality of services provided to communities. Additionally, municipalities have not completed critical infrastructure projects needed to address significant service delivery backlogs and improve access to basic services.
Maluleke emphasized the need for all parties involved in the accountability ecosystem to foster a sense of urgency to change the local government culture, achieve the desired outcomes, and restore public confidence in the provincial government.