Auditor-General Tsakani Maluleke has reported that South African municipalities incurred R145 billion in irregular expenditure over the past four financial years, according to her latest audit findings released on June 24, 2026. The report highlights a worsening trend, with metros described as 'going backwards' in financial management and service delivery.
The irregular expenditure, which includes unauthorized spending and non-compliance with procurement laws, has contributed to poor service delivery across many municipalities. Maluleke noted that only 27 of the country's 257 municipalities received clean audits for the 2025/26 financial year, a decline from previous years.
Key challenges identified include weak internal controls, political instability, and high vacancy rates in critical financial positions. The Auditor-General emphasized that without urgent intervention, the situation could deteriorate further, affecting basic services like water, electricity, and sanitation.
