Briefing the National Council of Provinces (NCOP) on the 2018/19 Local Government Audit Outcomes, the AG said while the number of clean audits increased from 18 to 20, the overall picture showed a regression in audit outcomes, with a total of 111 municipalities achieving an unqualified audit. The briefing, which took place just hours before the Finance Minister's much-anticipated supplementary budget speech, highlighted that municipalities in the country urgently need an intervention. This, as the majority of those with clean audits were found in the Western Cape while the Free State and the North West failed to produce any clean audits similar to the previous years.

The AG bemoaned the increased use of external consultants to facilitate the financial management of municipalities without producing any improved audit outcomes. This, in addition to escalating irregular expenditures.

In the North West and the Free State there were no clean audits recorded, and the Free State was singled out for particularly poor record-keeping with eight municipalities failing to submit their financials.

The office of the AG further indicated that the Rustenburg Local Municipality in the North West and the Mangaung Metro Municipality in the Free State are ranked among the top five municipalities with high irregular expenditure in the last 3 years.

The AG also pointed out that a lack of revenue collection, high vacancy rates, and cadre deployments has also added to the financial woes faced by municipalities.

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