The Public Servants Association (PSA) has raised concerns over worsening financial mismanagement in South Africa’s municipalities
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The Public Servants Association (PSA) has raised concerns over worsening financial mismanagement in South Africa’s municipalities.
This follows National Treasury’s report showing that irregular, fruitless and wasteful spending in local government has risen to R268.13 billion in the 2024/25 financial year, driven by weak internal controls, poor procurement practices, unstable leadership and limited consequences for financial misconduct.
The union said this shows serious governance problems in municipalities, which are affecting service delivery and public trust.
"This alarming trend reflects systemic weaknesses in financial management, accountability, and oversight," the union said.
"The continued disregard for compliance with procurement laws and public finance regulations undermines service delivery and erodes public trust in municipalities. Ultimately, citizens suffer the consequences of failing infrastructure, inadequate basic services, and diminished socio-economic opportunities".
The union added that stronger consequence management is needed to deal with financial misconduct.
"The PSA reiterates that many public servants operate under extremely challenging conditions, including political interference, capacity constraints, and a lack of adequate support. Whilst accountability is critical, blame cannot be unfairly shifted onto officials alone when systemic governance failures persist, and citizens suffer from a lack of water and basic services owing to financial irregularities".
The PSA also called for "urgent, decisive action, including strengthening consequence management for those responsible for financial misconduct. The capacity and protection of municipal officials should be enhanced to allow them to perform their duties without undue interference".
"Local government administration must be professionalised through merit-based appointments and improving oversight mechanisms at provincial and national levels.
"The PSA urges government to reform municipalities to restore integrity in public financial management. South Africa cannot afford continued financial mismanagement at local government level".
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