Article re-cap
- The City of Cape Town has lost its clean audit status following an unqualified opinion from the Auditor-General regarding procurement controls.
- A police investigation is currently examining City contracts valued at approximately R1.6 billion.
- The Western Cape High Court declared the City's property value based fixed charges for cleaning, water, and sewerage unconstitutional and invalid.
- The 2026/27 budget for Cape Town is set at R87.8 billion, which includes R74.7 billion for operating expenditure and R13 billion for capital.
The City of Cape Town has lost its clean audit status after the Auditor-General issued an unqualified opinion with findings regarding procurement controls.
A separate police investigation is currently examining City contracts valued at approximately R1.6 billion. Search and seizure operations were conducted at 26 addresses linked to officials, businesses, and service providers, according to a report by Faiez Jacobs.
The Auditor-General warned that supply chain and procurement controls require drastic improvement because R1.6 billion could not be properly accounted for. The findings follow the loss of the City's clean audit status, which had previously been used as a political defence by the Democratic Alliance.
The Western Cape High Court has also declared the City's property value based fixed charges for cleaning, water, and sewerage unconstitutional, unlawful, and invalid. The court found that these charges were calculated through property values despite residents being told they were service charges.
Cape Town's 2026/27 budget is set at R87.8 billion, consisting of R74.7 billion in operating expenditure and R13 billion in capital. Within the operating budget, R11.4 billion is allocated for contracted services, while R18.9 billion is designated for bulk electricity and R22.1 billion for employees.
The budget allocates R5.387 billion to Water and Sanitation, R3.039 billion to Urban Mobility, and R1.506 billion to Energy. Human Settlements is allocated approximately R967 million for its operations.
This follows earlier local coverage of City of Cape Town Faces Audit Findings, Metro Regressing Says AG.
Frequently asked questions
Why has Cape Town lost its clean audit status?
The Auditor-General issued an unqualified opinion with findings regarding procurement controls. The City could not properly account for approximately R1.6 billion in contracts, and the Auditor-General warned that supply chain and procurement controls require drastic improvement.
What police investigation is underway related to City contracts?
A police investigation is examining City contracts valued at approximately R1.6 billion. Search and seizure operations were conducted at 26 addresses linked to officials, businesses, and service providers involved in these contracts.
What did the Western Cape High Court find regarding Cape Town's service charges?
The court declared the City's property value based fixed charges for cleaning, water, and sewerage unconstitutional, unlawful, and invalid. The court found these charges were calculated through property values despite residents being told they were service charges.
How is Cape Town's 2026/27 budget allocated across key services?
The R87.8 billion budget allocates R5.387 billion to Water and Sanitation, R3.039 billion to Urban Mobility, R1.506 billion to Energy, and approximately R967 million to Human Settlements operations. R11.4 billion covers contracted services.
Source: themercury.co.za
