Auditor-General’s local government report points to SA becoming the Wild West 

On a recent visit to the United States, I was impressed to learn about the Office of the New York State Comptroller. This independent office controls the public spending in the city, reviewing all new plans and checking all paperwork before approval.

It is run by Thomas DiNapoli, whose main aim is to prevent corruption, waste and fraud; to protect taxpayer funds; and provide fiscal oversight. It seems to be getting a lot of things right – from job creation to arresting corrupt public officials and handing back millions of dollars in unpaid claims to tax payers.

DiNapoli is renowned for his selflessness, independence and unwavering leadership. Ever since assuming office, he has vigorously opposed the misappropriation of public funds, fortified a leading public pension fund in the country and persistently denounced financial tricks, reckless policies and incompetent government operations.  

We can only dream of having that kind of service delivery in South Africa. Because what we have in our own country is a massive failure at local government level.

It is all shockingly laid bare in the latest report by Auditor-General Tsakani Maluleke, who recently briefed the Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta). She revealed that only 34 (13%) of South Africa’s 257 municipalities obtained cleaned audits for the last financial year.

The AG’s report shows a troubling lack of governance, internal controls and financial regulation at local government level. A total of 87 municipalities have vacant positions for senior managers, notably for chief financial officers and municipal managers.

It is estimated that billions of rands are lost each year due to bad decisions, negligence or inefficiency. The report concludes that local government is getting worse – not better.    

The lack of skills must be addressed. Considering one out of every three councillors does not have matric, how can local governments function effectively?

When the South African Local Government Association addressed Cogta recently, a report by the director of research and programmes at Good Governance Africa, Dr Ross Harvey, highlighted the extent of wasted funds. This had increased from R4.89-billion in 2021–2022 to R7.41-billion in 2022–2023.

He said the figure could potentially be higher, as 15 municipalities “did not report all the fruitless and wasteful expenditure they should have reported in their financial statements”.   

In response, the national government announced that its Operation Vulindlela, an initiative set up by the Presidency and National Treasury, would also tackle strengthening local government in the second phase of its operation. But is it enough?  

The AG’s report does not come as a big surprise to most South Africans, who have been confronted daily by news headlines about increases in extortion cases and so-called “construction mafias” who use violence and threats to influence building projects.

In Cape Town’s Philippi, security guards escorting city officials repairing a sewerage pipe in the area were shot dead. Ambulances can’t reach people in need because they come under attack themselves and are in fear for their lives.    

Whistleblowers who report on corruption in their organisations are threatened and not protected. We can’t forget the story of Babita Deokaran, a chief director of financial accounting in the Gauteng Health Department, who discovered irregular payments and reported them. Only days before she was shot dead by unknown gunmen in her driveway, she sent an email saying she was worried her life was in danger.  

At the School of Public Leadership at the University of Stellenbosch, we often hear from public officials who find themselves thwarted by political interference. They are threatened with suspension and losing their means of supporting their families.

Providing skills and strategies to these officials is instrumental in getting them to handle these difficult situations. There are many public officials who want to effect change and drive positive development but find themselves blocked. How can we help them? 

The political instability within municipalities is evident all over the country, most recently in Tshwane where Mayor Cilliers Brink was ousted after many rounds of infighting. Meanwhile, Tshwane faces many problems, from mounting debt to water supply and electricity issues.  

Unfortunately, this scenario is not unique or limited to Tshwane. A report by the Local Government Sector Education and Training Authority sheds interesting light on this issue.

Based on interviews and surveys with local government officials, it emerged that while skills and expertise shortages were a concern, a much bigger headache was political dysfunction within local government. Over 60% of participants said it affected municipal governance efficiency.

The report concluded that transformational leadership would be pivotal in changing outcomes at municipal level. It called for more training as well as leadership development.  

Our history has a proud tradition of such transformational leaders, icons such as Nelson Mandela himself, who called for ethical leadership and true service to the people of the country. Developing leadership qualities in existing officials can make a difference. There is a well-researched link between good leadership and local government performance, which cannot be ignored.

Remember Advocate Thuli Madonsela, whose strong leadership transformed the office of the Public Protector into a corruption-busting machine that served the country incredibly well, exposing State Capture and corruption at the highest level of Jacob Zuma’s government. 

The importance of accountability must be moved to the top of the agenda. We need to put more checks and balances in place in our local governments — something like the Office of the New York State Comptroller where each tender or supplier contract is investigated before it is approved and implemented.

The political dysfunction in our municipalities has to stop. All the skills development in the world won’t help our local government officials if they are threatened with suspension or even losing their lives unless they keep quiet about irregularities.

We are headed for a lawless Wild West kind of scenario where the most powerful individuals buy luxury cars with taxpayer money while many South Africans suffer in unacceptable conditions.

The Auditor-General’s report is a call of action. We need to respond with targeted interventions — now. DM