Additionally, at the end of 2024, the South African Human Rights Commission (SAHRC) published<\/a> a report of its inquiry into service delivery at the local government level in the Free State.<\/p>\n\n\n\n According to the commission, the inquiry was necessitated by complaints regarding lack of access to water, electricity, housing, sanitation and refuse collection, which have remained amongst the highest complaints received.<\/p>\n\n\n\n Some of the report’s findings included:<\/p>\n\n\n\n The report noted that local municipalities violate constitutional and statutory obligations by allowing sewage spillages to contaminate water sources and the environment. <\/p>\n\n\n\n The report also found that some municipalities violate sections 27(1)(b) of the Constitution and regulations 2, 3, and 4 of the Regulations relating to compulsory national standards and measures to conserve water. <\/p>\n\n\n\n Another finding was that some local municipalities in the Free State are highly indebted to Eskom and water boards. <\/p>\n\n\n\n The challenges of vandalism, theft, and unlawful connections to water and electricity networks are some of the findings contained in the report.<\/p>\n\n\n\n Despite the SAHRC’s warnings and recommendations to address the province’s challenges, the situation in the Free State has worsened.<\/p>\n\n\n\n This was highlighted by a recent report published by the AG on Tuesday, 13 May 2025, which painted a very grim picture of two municipalities in particular.<\/p>\n\n\n\n Two municipalities in the Free State province are actively harming the communities they’re meant to serve. <\/p>\n\n\n\n This is the bleak conclusion of the AG\u2019s latest report, presented to Parliament\u2019s Standing Committee on Public Accounts.<\/p>\n\n\n\n The City Press reported<\/a> that it exposed an alarming degree of institutional collapse in the Mangaung Metropolitan Municipality and the Masilonyana Local Municipality.<\/p>\n\n\n\n The news publication reported that the AG blamed this collapse on mismanagement, corruption, and a shocking disregard for basic governance.<\/p>\n\n\n\n It also noted that findings are more than just another set of poor audit outcomes. They reveal a humanitarian crisis, where lives are being affected but by active failures in infrastructure, oversight, and service delivery. <\/p>\n\n\n\n The AG detailed how critical projects, meant to ensure water, sanitation, and clean environments, are either stalled, abandoned, or dangerously mismanaged. <\/p>\n\n\n\n Despite being under national intervention for years due to its persistent dysfunction, Mangaung Metropolitan Municipality has continued to spiral. <\/p>\n\n\n\n The AG\u2019s report painted a picture of a city where financial decisions bear little relationship to actual service delivery, and where management is either incapable or unwilling to enforce accountability.<\/p>\n\n\n\n It noted that Mangaung recorded R1.34 billion in unauthorised expenditure. On top of that, R277 million in irregular expenditure and R123 million in fruitless and wasteful expenditure were incurred.<\/p>\n\n\n\n Much of this is linked to failed projects and avoidable interest payments. The municipality also owes a staggering R922 million to water boards, while nearly half of its water supply has been lost through leaks or theft.<\/p>\n\n\n\n Although the metro had a capital expenditure budget of R792 million within its broader R6 billion budget, it still spent 111% of its total budget. <\/p>\n\n\n\n This overspending translated into achieving only 45% of its service delivery targets, highlighting a severe disconnect between financial inputs and tangible outcomes.<\/p>\n\n\n\n The AG warned that the municipality\u2019s financial health is so fragile that its ability to continue as a going concern is now in doubt. <\/p>\n\n\n\n A key driver of this collapse is a critical shortage of skilled personnel. The directorate responsible for infrastructure and technical services operates with a 62% vacancy rate, leaving it unable to manage or oversee essential projects. <\/p>\n\n\n\n Compounding the crisis are widespread failures in planning, contract management, and performance monitoring.<\/p>\n\n\n\n In total, 17 material irregularities, including breaches of contract and environmental laws, were flagged in Mangaung. However, no disciplinary action or recovery of funds was initiated until the AG formally intervened. <\/p>\n\n\n\n Without urgent reforms, such as proper staffing, functioning project management units, and strict financial controls, Mangaung is poised to deteriorate even further, deepening the crisis for its residents.<\/p>\n\n\n\n The AG report noted that if Mangaung is collapsing, Masilonyana Local Municipality, which covers towns like Theunissen and Winburg, has ceased to operate. <\/p>\n\n\n\n The AG issued a disclaimer audit opinion, the worst possible outcome, indicating that no reliable financial information could be obtained. <\/p>\n\n\n\n The municipality failed to submit its financial statements on time, and crucial records such as trial balances were not prepared at all.<\/p>\n\n\n\n The audit uncovered R112 million in irregular expenditure, although the actual figure is likely much higher due to the absence of records. <\/p>\n\n\n\n Fruitless and wasteful expenditure reached R39 million. Additionally, over R1.1 billion in unauthorised expenditure from the previous year was “reversed” on the books, without any supporting evidence or justification.<\/p>\n\n\n\n Internal controls and recordkeeping systems have completely collapsed. Despite significant budget allocations, not a single service delivery target was met during the year. <\/p>\n\n\n\n The AG also highlighted that the annual performance report was unreliable and failed to comply with legal standards, making it impossible to track the municipality\u2019s performance or progress.<\/p>\n\n\n\n Infrastructure projects in Masilonyana are riddled with poor planning, delays, cost overruns, and outright vandalism. <\/p>\n\n\n\n Despite the damning finding, the report further noted a lack of consequence management in both municipalities. <\/p>\n\n\n\n The AG flagged that investigations were never launched and that disciplinary boards were either dormant or nonexistent.<\/p>\n\n\n\n It added that no individuals were held accountable for financial misconduct. \u201cNo action was taken to recover losses, investigate wrongdoing or prevent recurrence.\u201d<\/p>\n\n\n\n Faced with persistent noncompliance and negligence, the AGl has warned that it may invoke its expanded powers under the Public Audit Act. <\/p>\n\n\n\n This includes issuing certificates of debt to recover funds directly from officials and referring cases for criminal investigation or prosecution.<\/p>\n\n\n\n It added that the communities affected by this breakdown in governance are living without the most basic services and are exposed daily to environmental and health hazards. <\/p>\n\n\n\n The AG said that without swift and decisive action, these municipalities may fail to recover and cause irreparable damage to the lives of the people they are meant to serve.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" A recent Auditor-General report flagged two municipalities in South Africa where residents get no basic services and are exposed to health hazards daily.<\/p>\n","protected":false},"author":92,"featured_media":816043,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[20963,6480,853,21734],"class_list":["post-824410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-auditor-general-ag","tag-free-state","tag-south-africa","tag-the-south-african-human-rights-commission-sahrc"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/824410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=824410"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/824410\/revisions"}],"predecessor-version":[{"id":824920,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/824410\/revisions\/824920"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/816043"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=824410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=824410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=824410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Free State municipalities are causing harm <\/h2>\n\n\n\n
Mangaung <\/h2>\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/05\/Mangaung--1024x576.jpg\")
<\/a>Masilonyana<\/h2>\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/05\/Masilonyana-1024x576.jpg\")
<\/a>
\n\n\n\nCollapse of Mangaung in images <\/h2>\n\n\n\n
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