Article re-cap
- The Auditor-General reported that the City of Cape Town received an unqualified audit with findings.
- Metropolitan municipalities are regressing financially, according to Tsakani Maluleke.
- Concerns around procurement processes within the City of Cape Town highlighted red flags despite an unqualified audit.
The Auditor-General reported that the City of Cape Town received an unqualified audit with findings and that metropolitan municipalities are regressing financially, according to Tsakani Maluleke.
Auditor-General Tsakani Maluleke stated that out of all municipal categories, metros are going backwards with no improvement. She made this comment during a briefing to the Cooperative Government Committee on Wednesday, June 25th, 2026.
Maluleke highlighted concerns around procurement processes within the City of Cape Town, citing red flags despite an unqualified audit. The City received an unqualified audit with findings. Internal controls regarding supply chain management require attention, she noted.
The Auditor-General also raised concerns about entities within the City of Johannesburg, which received unqualified audits with findings. Eight metros account for 54% of the local government’s expenditure budget and warrant special attention.
Despite these challenges, Maluleke commended the country's 257 municipalities for achieving a 98% submission rate of their financial statements for the last financial year ending June 2025. This represents a significant achievement in municipal reporting across South Africa.
Frequently asked questions
What did the Auditor-General say about Cape Town's audit results?
The City of Cape Town received an unqualified audit with findings. The Auditor-General highlighted concerns about procurement processes and internal controls regarding supply chain management, despite the unqualified status.
Why are metropolitan municipalities of concern to the Auditor-General?
According to Tsakani Maluleke, out of all municipal categories, metros are going backwards with no improvement. Eight metros account for 54% of local government's expenditure budget, making them warrant special attention.
What positive achievement did the Auditor-General highlight about South African municipalities?
The country's 257 municipalities achieved a 98% submission rate of their financial statements for the last financial year ending June 2025, which the Auditor-General described as a significant achievement in municipal reporting.
What specific red flags were identified in Cape Town's procurement processes?
The article states the Auditor-General cited red flags in procurement processes within the City of Cape Town, though specific details of those red flags are not provided in the report.
Source: ewn.co.za
