Following the release of the Local Government Audit Outcomes for 2021/22 this week, the Western Cape government says 90% or 27 municipalities in the Western Cape can account for their budgets.

The Auditor General Tsakani Maluleke found that 21 out of the 30 Western Cape’s local municipalities received unqualified (clean) audits with no findings, and 6 municipalities received clean audits with findings.

The best-run municipality in the country is the West Coast District Municipality, which has achieved a clean audit for 12 years in a row.

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Only 38 out of 257 municipalities in South African achieved a clean audit, which means there are only 17 municipalities outside of the Western Cape that achieved a clean audit.

AG Tsakani Maluleke presented the audit outcomes of local government to Parliament yesterday, read the full report here https://t.co/z3kPYGHGNO#AGReport pic.twitter.com/vMNyi1INT3

— Auditor-General SA (@AuditorGen_SA) June 1, 2023

Western Cape MEC of Local Government Anton Bredell says they’ve work hard over several years to design and maintain strong financial systems and ensure the right people with the right skills are employed in critical positions.

The MEC of Finance and Economic Opportunities, Mireille Wenger, says they are committed to work even harder, to do better.

“To assist with this goal, the Western Cape Financial Management Capability Grant (WC FMCG) supports municipalities to improve their overall financial management capabilities. This will in turn strengthen their ability to deliver services and enable growth.” 

Bredell believes that municipalities which consistently achieve clean audits should be recognised and rewarded by the Auditor General and National Treasury.

“Municipalities that have over time proven they can be trusted with public money should be managed in a more mature manner with less reporting red tape from the Auditor General. Let us allow these municipalities to procure goods and services quickly and let us allow them to make more independent financial decisions.”

Bredell adds that well run councils with clean audits should be rewarded by National Treasury when the equitable share for local government is calculated.

“Let us channel more resources to local governments that give us the best value for our tax money.”

Bredell says of concern in the province is Beaufort West Municipality, which received a qualified audit opinion, Kannaland Municipality regressed to a disclaimed opinion, and Laingsburg deteriorated to an adverse opinion, according to the AG’s report.

Bredell echoed the AG’s sentiments, that efforts to turn some municipalities around are severely hampered by unstable coalition politics.