For millions of South Africans, failing municipalities have become a daily reality of dry taps, broken roads, and unreliable electricity. Now, fresh findings from the Auditor-General and corruption probes by the Special Investigating Unit (SIU) confirm that weak governance and procurement fraud are at the heart of the crisis.
Communities say they are already paying the price. For residents like Celius in Tshwane, daily life has become a constant battle.
“Everything is a disaster. This country is rotting,” Celius said.
The Auditor-General has highlighted familiar but deepening issues, including weak procurement controls, material breakdowns in tax matters, preferential regulations not being adhered to, and uncompetitive procurement processes. The AG also noted prohibited awards made to state officials.
In metros like Tshwane and Ekurhuleni, some improvements have been recorded, but procurement risks remain high. The Auditor-General warns of weak governance, unreliable data, and growing exposure to financial risk.
Corruption investigators say those governance gaps are often where abuse takes root. The SIU has completed 15 of 19 investigations across 11 municipalities. Common findings include breaches of the Municipal Finance Management Act, irregular tenders, and missing documents.
The SIU also warns that the same service providers appear repeatedly in the web of procurement fraud, with one provider moving from the North West to the Eastern Cape.
“I fully agree … that this is purely criminality,” a SIU spokesperson said. “The whole thing was designed in order to make sure they siphon money out of the municipality. The same service provider doing this has recently been arrested, and we have found the very same piggy banking has happened in several municipalities in the Eastern Cape.”
Experts warn the crisis runs deeper than isolated incidents, pointing instead to systematic failure.
A spokesperson for the Centre for Risk Analysis said: “What’s meant to be used on service delivery and capital formation is either being irregularly used, either being stolen, or being used for salaries. We can see that sometimes over 50% of a municipality’s budget is used on salaries and wages rather than on infrastructure. That infrastructure decay will turn away private investors who would want to open shop in a certain municipality.”
Political parties say communities are bearing the brunt.
“Our country has managers and leaders who are not qualified to do that job,” a political party spokesperson said. “Nothing is actually functional — from education to health to housing. All revolves around procurement irregularities and poor governance. When a fish rots, it rots from the head.”
President Cyril Ramaphosa has acknowledged the pressure municipalities face, including limited revenue and growing service demand, but he stresses that stronger governance and tighter procurement controls are critical.
With oversight visits planned and more investigations likely, the key question now is whether these findings will lead to real accountability and better services on the ground.