Municipalities across South Africa continue to spend billions on consultants despite ongoing challenges in governance and financial management, according to the latest report from the Auditor-General.
The report reveals that municipalities spent approximately R1.6 billion on consultants during the reporting period, yet only 39 of the country's 257 municipalities achieved clean audits.
Acting Head of Audit at the Auditor-General's office, Thami Zikode, said the heavy reliance on consultants is largely driven by a shortage of skilled personnel within local government.
According to Zikode, many qualified professionals leave municipalities for better opportunities in the private sector, forcing municipalities to rely on external consultants to assist with the preparation of financial statements and other key functions.
"This becomes a problem because it is not sustainable. Municipalities need their own internally skilled people to be able to deliver services effectively," he said.
Zikode also highlighted infrastructure development and maintenance as another major challenge affecting service delivery across the country.
He said municipalities are not investing enough in maintaining existing infrastructure or developing new projects, resulting in a gradual decline in service delivery capabilities.
"The amounts being budgeted and spent on infrastructure are below prescribed norms," he said.
National Treasury guidelines recommend that municipalities allocate at least eight percent of their budgets towards infrastructure maintenance and development programmes.
According to Zikode, many municipalities have failed to meet this target.
"This has not been done," he said, warning that inadequate investment inevitably leads to the deterioration of critical infrastructure.
The Auditor-General's report further found that metropolitan municipalities are experiencing some of the most significant challenges despite having access to larger budgets and greater resources.
Zikode said this trend is particularly concerning.
"That is where the bulk of municipal budgets are concentrated. These municipalities have the financial resources to attract the skills they need," he said.
The findings have renewed concerns about the sustainability of local government finances, the effectiveness of municipal administration and the long-term impact of underinvestment in infrastructure on communities across South Africa.