Auditor-General Report: Free State Municipalities Harming Residents Through Mismanagement
A damning Auditor-General report has revealed that Mangaung and Masilonyana municipalities in South Africa’s Free State province are so poorly managed that they’re actively harming their communities through systemic failures in governance and service delivery.
Chronic Municipal Failures in the Free State
The Free State’s municipal crisis has been worsening for years, with collapsing infrastructure becoming emblematic of the province’s rural areas. Crumbling roads, failing water systems, inadequate sanitation, and persistent electricity outages plague communities across the region.
The Auditor-General’s reports for 2022/23 and 2023/24 show that not a single Free State municipality received a clean audit. The South African Human Rights Commission (SAHRC) corroborated these findings in a 2024 report, citing:
- Critical staff shortages at management and technical levels
- Complete neglect of infrastructure maintenance
- Non-functional waste management systems
- Severe revenue collection problems threatening financial viability
Municipalities Violating Constitutional Rights
The reports document alarming constitutional violations, including:
- Unchecked sewage contamination of water sources
- Violations of water conservation regulations
- Massive debts to Eskom and water boards
- Rampant vandalism and illegal utility connections
Mangaung Metro: A Case Study in Collapse
Despite being under national administration, Mangaung Metropolitan Municipality continues its downward spiral:
- R1.34 billion in unauthorized expenditure
- R277 million irregular expenditure
- R123 million wasted funds
- R922 million owed to water boards
- 45% water loss through leaks/theft
- 62% vacancy rate in critical technical departments
The AG warned that Mangaung’s financial position is so precarious that its continued operation is in serious doubt.
Masilonyana: Municipal Failure at its Worst
The AG issued its most severe disclaimer opinion for Masilonyana Local Municipality, finding:
- Complete breakdown of financial record-keeping
- R112 million in irregular expenditure (likely higher)
- R39 million in wasteful spending
- Zero service delivery targets met
- No consequence management for misconduct
No Accountability, No Solutions
The AG found that in both municipalities:
- No investigations into financial misconduct were conducted
- No funds were recovered
- No disciplinary actions were taken
The report warns that without immediate intervention, these municipalities may collapse entirely, leaving residents without basic services and exposed to serious health hazards.
Visual Evidence of Municipal Collapse
Source: BusinessTech