Gauteng Municipalities Record R14.4 Billion In Irregular Expenditure, Treasury Raises Alarm

Provincial authorities say municipalities must strengthen governance and ensure public funds are spent in line with the law. The audit outcomes indicate that many councils continue to struggle with compliance and financial controls.

Gauteng Municipalities Record R14.4 Billion In Irregular Expenditure, Treasury Raises Alarm-The Times Post
Gauteng Municipalities Record R14.4 Billion In Irregular Expenditure, Treasury Raises Alarm

The Gauteng government has criticised municipalities across the province after they recorded billions of rands in irregular expenditure during the 2024/2025 financial year. The concerns follow the release of the provincial treasury’s consolidated audit report covering Gauteng’s 11 municipalities. Only two municipalities achieved clean audits during the reporting period.

Gauteng Municipalities Record R14.4 Billion In Irregular Expenditure

The Gauteng Treasury report shows that municipalities accumulated a combined R14.4 billion in irregular expenditure during the financial year under review. Irregular expenditure refers to spending that does not comply with the legislative requirements governing municipal finances. The findings have renewed concerns about financial management across local government in the province.

Provincial authorities say municipalities must strengthen governance and ensure public funds are spent in line with the law. The audit outcomes indicate that many councils continue to struggle with compliance and financial controls.

Only Two Gauteng Municipalities Receive Clean Audits

The consolidated audit report found that only two of Gauteng’s 11 municipalities obtained clean audits for the 2024/2025 financial year. The remaining municipalities were found to have shortcomings in financial administration and compliance. The provincial government says these results highlight the need for greater accountability in local government.

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The findings also reinforce concerns that weaknesses in financial management are limiting municipalities’ ability to deliver services effectively. Treasury has urged municipalities to improve oversight and strengthen internal controls.

Nkululeko Dunga Calls For Better Use Of Public Funds

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Gauteng Finance MEC Nkululeko Dunga said the province has sufficient financial resources but continues to face challenges because funds are not being managed effectively. He said the recurring audit findings point to poor financial discipline rather than a lack of available money. Dunga stressed that public resources must be directed towards addressing the needs of residents.

“Gauteng is not a poor province. This is a province with capital, and the auditor-general has found, again and again, that we are not channeling these resources effectively enough to deal with the challenges our people actually face. This is not a story about the absence of money. It is a story about the absence of discipline in how that money is spent.”