Auditor-General South Africa

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Access the site on: https://www.agsa.co.za

Tune in to hear Noma Mkhize, KwaZulu-Natal Business Unit Leader, share insights from the 2024–25 Local Government Audit Outcomes report on VumaFM at 20:00 tonight.

Access the full report here: https://www.agsa.co.za/reports/mfma-reports

Throughout this administration, the AGSA has called on all accountability ecosystem roleplayers to uphold the law, strengthen accountability and transparency, and work together to improve service delivery and fiscal discipline. While some progress has been made, it remains limited.

The AGSA audits continue to reveal accountability failures that contribute to poor audit outcomes and service delivery challenges. Achieving good governance in local government requires every roleplayer to fulfil their responsibilities effectively.

Access the full report here: https://www.agsa.co.za/reports/mfma-reports

A material irregularity (MI) is any non-compliance with, or contravention of, legislation, fraud, theft, or a breach of a fiduciary duty identified during an audit performed under the Public Audit Act that resulted in or is likely to result in a material financial loss, the misuse or loss of a material public resource, or substantial harm to a public sector institution or the public.

By the end of 2025, the AGSA had identified 516 material irregularities (MIs), 73 of which were new. These irregularities reflect persistent weaknesses in performance, accountability, transparency, and institutional integrity, while highlighting failures in leadership, oversight, and governance across local government.

Access the full report here: https://www.agsa.co.za/reports/mfma-reports

Based on information disclosed in the financial statements, R145,21 billion in irregular expenditure has been incurred since 2021-22, with municipalities accounting for R120,02 billion (83%) and municipal entities R25,19 billion (17%). The highest rates of incomplete irregular expenditure disclosures were recorded in North West (95%), Gauteng (75%) and Mpumalanga (65%).

Access the full report here: https://www.agsa.co.za/reports/mfma-reports

Over the past decade, municipalities’ reliance and spending on consultants has increased significantly, often without corresponding benefits. In 2024-25, 225 municipalities (88%) spent R1,61 billion on financial reporting consultants.


Access the full report here: https://www.agsa.co.za/reports/mfma-reports

Tune in today as AGSA leaders share key insights from the 2024–25 Local Government Audit Outcomes. Catch Dr Thami Zikode, Acting Head of Audit, and Alice Muller, Head of Portfolio, live on:

- Power FM | 16:45
- 702 | 17:12
- Capricorn FM | 18:25
- RSG | 18:25

Don’t miss this important conversation on how municipalities are managing public funds.

The AGSA’s 2024-25 report indicates that only 35% of municipalities are in good financial health. The other 65% face significant exposure to financial distress and may struggle to sustain operations, meet financial obligations, maintain service delivery and effectively manage public resources.

Access the full report here: https://www.agsa.co.za/reports/mfma-reports

Managing more than half of the local government budget, Gauteng, KwaZulu-Natal and the Western Cape play a significant role in service delivery and financial management.

Most clean audits are concentrated in the Western Cape but experienced some regressions, KwaZulu-Natal is improving but clean audits remain limited and progress is slow, while the regressions in Gauteng are deeply concerning.

Access the full report here: https://www.agsa.co.za/reports/mfma-reports

Regressions in metro audit outcomes are concerning, as metros account for R335,97 billion (54%) of local government expenditure and serve approximately 8,9 million households (46%).

While some intermediate cities (urban municipalities) moved out of the adverse and disclaimed audit opinion space, most stagnated over the administration and the number of clean audits decreased.

Access the full report here: https://www.agsa.co.za/reports/mfma-reports