Most of South Africa’s 257 municipalities are in a disastrous financial position. According to the country’s Auditor General, only 33 (13%) are in full compliance with the relevant legal requirements, and produced quality financial statements and performance reports.
The most recent audit report from Auditor General, Kimi Makwetu, shows that nearly a third (31%) of the municipalities indicated that they are not financially viable. In business terms that means they are not going concerns anymore.
According to Makwetu this dire situation can be ascribed to a range of factors. These include a lack of appropriate financial and management skills, political interference and infighting in councils. The failure to fill key personnel positions is also a problem, as is the fact that there’s clearly a lack of political will to ensure accountability.
Read the rest of the article here – http://theconversation.com/local-government-in-south-africa-is-in-crisis-how-it-can-be-fixed-97331