Addressing the media on the 2017/18 audit outcomes, Makwetu said irregular and fruitless expenditure in the majority of municipalities countrywide is still extremely high and has become a great concern. He highlighted that there are limited municipalities across the country that were able to achieve a clean audit status and that billions of irregular expenditure were recorded across all nine provinces. He said although irregular expenditure has decreased from R29,7 billion to R25,2 billion, it remains high. Makwetu said most municipalities still sit with a high number of incomplete projects, inadequate infrastructure, a lack of financial controls, and high vacancy rates, amongst others.

He also noted that a significant number of municipalities in the Free State were amongst those that submitted their financial statements late, had a total breakdown of financial controls, poor leadership response to issues faced by the municipality, and are characterised by a lack of capacity and instability.

Makwetu has reiterated that all municipalities in this province are in a vulnerable position and needs urgent intervention. He further stated that 79% of municipalities in this province have ignored the recommendations they have made in the past and have regressed drastically.

In his last report, Makwetu indicated that the state of good governance was on a decline and a lack of accountability had become prevalent in most municipalities in this province.

Municipalities in this province had incurred a total of R675 million in irregular expenditure during the 2016/17 fiscal year alone. They are more than R7.8 billion indebted to Eskom, which is considered the highest amount if compared to municipalities in other provinces.

He has specifically alluded that the lack of development and maintenance of infrastructure, in Maluti-A-Phofung, Matjhabeng and Metsimaholo Municipalities, is of great concern.

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