The Auditor-General, Tsakani Maluleke, proposed that the Standing Committee on Public Accounts (SCOPA) should be engaged to further investigate the delays caused by municipalities that missed the legally mandated deadline for submitting their annual financial statements for auditing.
Image: Thobile Mathonsi / Independent Newspapers
The Auditor-General, Tsakani Maluleke, disclosed that the City of Cape Town and Johannesburg metros are included in a group of nine municipalities and municipal entities that whose audits of finances for the 2024/25 were outstanding as at the end of January.
Maluleke made the revelation in a letter sent to National Assembly Speaker Thoko Didiza, in accordance with the Municipal Finance Management Act (MFMA).
Her letter, dated February 10, 2026, indicated that under the MFMA, municipal accounting officers are mandated to submit annual financial statements to the Auditor-General within two months following the year-end, which for local governments is the end of June.
These statements should have reached the Auditor-General by the end of September each year, yet this critical deadline went unmet for several local councils.
Maluleke said the Public Audit Act obliged her to submit a report to Parliament and the relevant provincial legislatures by no later than October 31 of each year that contained the names of municipalities and entities that have failed to submit their annual financial statements.
This was to be followed by the submission of quarterly reports on those institutions whose financial statements remained outstanding.
Maluleke said that when she was unable to finalise the audit within the three months after receipt of the annual financial statements, she must also submit a report on the reasons for the delays to the affected auditees to both the national and provincial legislatures.
She confirmed that her office signed off on 230 local government audit reports as of November 30, 2025, up from 206 recorded in the prior year.
There were 24 outstanding audits, a decrease from 44, which excluded those that submitted their annual financial statements late towards the end of the audit period.
“As of January 31, 2026, there are nine outstanding audits consisting of seven municipalities and two entities,” said Maluleke.
The City of Cape Town in the Western Cape, Ekurhuleni Metro, and the City of Johannesburg in Gauteng were specifically cited, alongside the Buffalo City Development Agency in the Eastern Cape.
Each of these entities has invoked the formal dispute-resolution process regarding their financial audits, contributing to the delays.
Several municipalities, including Maluti-o-Phofung and Matjhabeng, were noted for their late submissions of financial statements, proceeding two months past the designated deadline.
Others are Maluti-o-Phofung Water, and Nala Municipality in the Free State, as well as Kheis in the Northern Cape.
“The timely submission of quality financial statements by accounting officers in local government remains a concern and the primary reason for the delays in finalising audits within the legislated timeframes,” said Maluleke.
She added that her office collaborates closely with the affected entities to mitigate these issues, but emphasised the need for continuing oversight to enhance municipal financial discipline.
Maluleke has urged Didiza to exercise her power to take necessary actions, including tabling the report to address the ongoing challenges, particularly regarding the late submission of annual financial statements.
She suggested that the Standing Committee on Public Accounts could be engaged to scrutinise the delays further.
“A referral to the Portfolio Committee on Cooperative Governance and Traditional Affairs may assist in delving deeper into the systemic issues that hinder municipalities in preparing and submitting quality statements on time,” Maluleke said.
Meanwhile, the City of Cape Town said in a statement on Friday that it submitted its financial statements and performance scorecards to the Auditor-General on August 29, 2025, in line with the legislative requirements of submission of these documents.
“The A-G indicated late last week that they are working to a deadline of February 26, 2026, to provide feedback on the city’s audit. The city does not control the timelines and process.
“The city appreciates the positive working relationship with the A-G and the spirit in which these routine engagements occur annually. However, it must be stated that the city did submit its required documents as per the A-G deadline ahead of September 2025,” it said.
mayibongwe.maqhina@inl.co.za