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But it’s a war that is far from won.
A good outcome, but Auditor-General Tsakani Maluleke seems exasperated at the lack of accountability among those charged with spending public money. Image: Brand South Africa
Auditor-General (AG) Tsakani Maluleke says R4.5 billion has been recovered over the last five years after being flagged as irregular.
Some of this came from the recovery of part of the R700 million awarded by the Energy and Water Sector Education and Training Authority (Seta) for training programmes where little to no value was delivered, and in violation of National Treasury rules which require evidence of services rendered before payment.
The R4.5 billion recovery over five years may seem like chump change given the magnitude of the problem confronting the AG. Its latest report on local government identifies R8.74 billion lost in 285 municipalities as a result of non-compliance with the law and suspected fraud.
Speaking at a Centre for Development and Enterprise (CDE) presentation, Maluleke seemed exasperated at the lack of accountability among those charged with spending public money.
“I’ve been here at AG for 13 years and we’ve looked at this from every direction and concluded we have to look at governance.
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“Basic management disciplines are not in place,” she said.
Asked what improvements she observes, Maluleke pointed to the reduction in the number of disclaimers in AG audit opinions – down from 28 to 14 – and the not-insubstantial R4.5 billion recovery in funds.
The recovery operations were fortified by changes in the law in 2019 that gave the AG expanded powers to demand action and accountability for material irregularities.
These include payments for goods and services not received or of poor quality, penalties imposed on municipalities for non-payment of Eskom and water board bills, and revenue lost due to unbilled accounts or unrecovered debts.
The AGSA’s expanded powers allow it to issue stronger recommendations and refer cases to bodies like the Hawks or the Special Investigating Unit for disciplinary action.
No easy task
The perception of auditing as a safe and sedentary occupation was shattered by the recent murder of Ekurhuleni’s senior auditor, Mpho Mafole.
Mafole, a former Auditor-General South Africa (AGSA) staffer, was investigating R2 billion in missing funds when he was gunned down.
“We’re under threat of violence every day,” said Maluleke. “We must get to the bottom of who did what and why. Our thoughts are with his family.”
With 4 000 staff, including 900 chartered accountants, the AG’s office conducts over 1 000 audits annually across all public institutions, as mandated by Chapter 9 of the Constitution.
These audits assess the credibility of financial statements, performance against objectives, compliance with the rule of law, and systemic issues in governance. The reports are intended for citizens, parliamentarians, ministers and departmental management, backed by actionable advice to improve operations.
AGSA is one of the country’s most respected institutions, having gained public trust by naming and shaming those involved in squandering or looting funds.
Its independence is constitutionally guaranteed, making it one of only two global audit bodies with full autonomy, according to the World Bank.
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Municipalities still an issue
Municipalities, however, remain a weak link, with mayors, municipal councils and executive teams failing in their oversight duties. This extends to the provincial level, where many of the responsible leaders don’t even bother to read the AG reports.
“When councils are unstable, performance suffers, budgets go unfunded, and infrastructure crumbles,” said Maluleke.
Many municipalities misallocate grant funds to pay debts, like last year’s Eskom bills, or hire underperforming staff instead of maintaining critical services such as water and electricity. This creates a vicious cycle: economic strain reduces ratepayer payments, squeezing municipal cash flow and crowding out essential infrastructure spending.
Operation Vulindlela, set up by President Cyril Ramaphosa to reform the economy as a trigger for growth, shows spending on salaries in SA’s cities increased 84% between 2010 and 2014, while property rates and service charges have virtually doubled over the same period.
Of the eight metros in SA, only Cape Town achieved a clean audit, meaning it has credible financials and no significant non-compliance.
Three metros received unqualified audits, but four – including Johannesburg – failed to present reliable financial statements.
ALSO READ: SIU finds no corruption in City of Joburg but Auditor-General has concerns
City of Joburg
Joburg’s deterioration at the hands of squabbling councillors is visible to the eye but preceding this was a steady weakening in its institutional capacity, marked by poor project management and irregular spending – including the award of R972 million in tenders to family members linked city officials and councillors for the extension of the BRT/Rea Vaya bus system in 2023.
This was flagged by the AG for its potential conflicts of interest, though she says there is no law that specifically prohibits the award of tenders to close family members or business associates. The real question was whether the City of Joburg failed in its oversight duties.
“Joburg has high levels of irregular spending and does not seem to be getting [it] under control. The [city] council, speaker and mayor don’t seem to be decisive,” she said.
Maluleke attributes this to poor financial management, noting that municipalities often lack basic disciplines like matching budgets to performance goals.
Operation Vulindlela’s latest report (July 2025) echoes this, advocating for financial reforms to stabilise municipalities through better revenue collection and governance. High salary costs exacerbate the problem, with some municipalities prioritising personnel over infrastructure, a trend Maluleke links to weak councils fostering a culture of impunity.
ALSO READ: Eastern Cape local municipality is the worst run – Auditor General
Some bright spots
It’s not all doom and gloom. Midvaal in Gauteng, with clean audits for over a decade, exemplifies strong stewardship, maintaining quality roads and services.
Maluleke’s audit staff complain of speeding tickets because the roads in Midvaal are in such good order.
The municipality’s responsiveness is what sets it apart, said Maluleke, contrasting this with poorly run municipalities where living conditions deteriorate.
The 2024 Public Procurement Act aims to close loopholes using technology for better oversight, but Maluleke cautions that no legislation works if rules are flouted without consequence.
She advocates for stronger codes of conduct, skilled leadership, and internal controls to enforce accountability.
AGSA has come under political attack from different quarters but remains steadfast, protected by rigorous, evidence-based processes. Maluleke doesn’t sign reports herself; a qualified team ensures objectivity.
“We should never tolerate [audit] disclaimers,” she said.
By referring cases to investigative bodies and pushing for governance reforms, there is hope that the war against impunity and waste will eventually win the day. But we’re still a long way from that.
This article was republished from Moneyweb. Read the original here.
