The office of the Auditor-General of South Africa has refined it’s work over the years beyond reliable financial statements to include an evaluation of performance, as well as consequence management.
Auditor-General Tsakani Maluleke was delivering a public lecture at the University of KwaZulu-Natal in Durban.
Maluleke says the Auditor-General of South Africa is globally recognised for delivering cutting-edge work in its quest to ensure that citizens get services they are entitled to.
Maluleke says amendments to legislation expanding the Auditor-General’s powers to enforce the implementation of its recommendations, have seen a number of municipalities, including Johannesburg and eThekwini, being called to Parliament to account.
“In our diagnosis and our assessment of what the context of South Africa is right now, is that the majority of auditees sit in this yellow space – this is unqualified with findings. It’s fine if, let’s say, you are Impendle and you’re moving towards yellow. That’s fine. We can applaud you. However, if you are sitting in the yellow zone for 20 years as eThekiwini has done, then we must start asking questions whether you are interested in dealing with the problems we have told you have.”
Maluleke says their investigations into performance management have shown that a number of government entities that were supposed to oversee municipalities, were just ticking boxes without ensuring that development plans are implemented.
AG Tsakani Maluleke has arrived at the University of KwaZulu-Natal, where she is delivering a public lecture at the College of Humanities on the role of the Auditor-General in enhancing government’s service delivery performance in South Africa.
The lecture provides an… pic.twitter.com/38QFTbzMY1
— Auditor-General South Africa (@AuditorGen_SA) August 4, 2026
Water and electricity losses which are putting municipalities in a precarious financial state, are due to the state having weak capabilities to handle infrastructure projects, according to Maluleke.
“First of all they plan badly. So, they have a long plan for an infrastructure project but they don’t budget for it properly. Or they are uncoordinated. They’ll go build houses and the bulk infrastructure is not in. Second of all they procure badly. So, they end up appointing contractors that are unlikely to deliver what’s required because they flouted the procurement processes. Third of all, when that contractor has been appointed they then don’t monitor that contractor properly. And then, fourth, they don’t hold anyone accountable – not the contractor, not the staff in the environment.”
Maluleke says municipalities need to undergo reform if they are to deal with Eskom debt – which has now accumulated to R119-billion.
This is after 74% of municipalities couldn’t keep to the conditions of Eskom’s debt restructuring that National Treasury negotiated for them two years ago.
Maluleke says some municipalities are not viable, but for others it’s due to a history of financial mismanagement.
“So, you got to solve for both. Some of it is viability, so you might need to put more money in. But rather some of it is financial governance. Even if you put more money, if you do it into the same system you’ll get the same outcome. So, you need to solve for both. So there has to be greater reform. And it’s going to be very painful. I listened to the Minister of Finance recently talking about the City of Joburg and he was analysing their profile in terms of salaries and wages and makes the concession that they’ve taken on particular responsibilities that other metros might not have had to do. But there has to be reform.”
Maluleke says their audit reports are now structured in such a way that they look at all levels within municipalities, including the role of politicians, when looking at performance, compliance with legislation and consequence management.
