Serious concerns have been raised about service delivery and financial management at AbaQulusi Local Municipality after the latest report by the Auditor-General of South Africa revealed that only about 30% of planned targets were achieved despite full budget expenditure.

Incomplete projects and failing infrastructure

Although the municipality received an unqualified audit opinion, the report highlights ongoing shortcomings in implementation, oversight and infrastructure delivery, issues residents say continue to affect access to basic services.

Across several wards, key infrastructure projects remain incomplete. Roadworks are reported to be between 0% and 45% complete, while a community sports field stands at 22% completion and a community hall at 78%. Electricity rollout has also underperformed, with some areas recording no new household connections despite allocated funding.

Losses and growing financial pressure

The report further points to significant system losses, with millions lost through electricity and water networks. These losses are attributed to ageing infrastructure, illegal connections and ongoing maintenance challenges.

Financial management has also come under scrutiny. The audit flagged more than R310 million in unauthorised expenditure, alongside irregular and wasteful spending, and noted that some of these matters were not adequately investigated, raising concerns about accountability.

Municipality explains expenditure

In response to questions from the Vryheid Herald, the municipality said the unauthorised expenditure figure for the 2024/2025 financial year stands at R172.4 million, which it described as significantly lower than the R310 million previously reported.

Municipal officials said the expenditure relates to a combination of accounting adjustments and operational pressures, including water losses due to ageing infrastructure, rising consumer debt and the costs associated with maintaining essential services.

The municipality added that overspending in some areas was driven by factors such as natural disasters, cable theft, vandalism and increasing bulk electricity charges from Eskom, some of which cannot be fully recovered from consumers. Cash flow constraints linked to revenue collection challenges were also cited as a contributing factor.

Plans to improve revenue and control

AbaQulusi acknowledged the Auditor-General’s findings on weaknesses in oversight and accountability, attributing these in part to inefficient revenue collection, infrastructure losses and illegal connections.

To address these issues, the municipality said it has adopted a Revenue Enhancement Strategy, approved by council in March 2026. The plan aims to improve billing accuracy, tackle illegal connections, identify additional revenue streams and strengthen financial controls. A Revenue Enhancement Committee has also been established to monitor implementation and report to council.

AfriForum criticises planning and execution

Meanwhile, AfriForum Vryheid has submitted input on the draft 2026/2027 Integrated Development Plan (IDP), raising concerns about what it describes as a disconnect between municipal spending and service delivery.

The organisation highlighted ongoing issues including weak revenue collection, high consumer debt, infrastructure losses and repeated irregular expenditure. It also criticised planning processes, stating that the IDP lacks measurable targets, realistic timelines and sufficient focus on maintenance.

AfriForum Vryheid branch chairperson André van der Walt called for improved financial discipline, stronger accountability and more effective service delivery planning.

Residents continue to feel the impact

Taken together, the Auditor-General’s findings, the municipality’s response and concerns from AfriForum reflect ongoing challenges in aligning municipal spending with service delivery outcomes.

For residents, the impact remains visible in incomplete projects, infrastructure backlogs and continued pressure on basic services.

The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area.