The Auditor-General of South Africa has delayed signing off on the 2024-25 audit reports for the cities of Cape Town, Johannesburg, and Ekurhuleni due to formal disputes raised by the municipalities. These delays stem from disagreements over audit interpretations and technical matters, raising concerns about financial governance. Opposition parties have questioned whether the audit outcomes have worsened from the previous year.
The Auditor-General (AG) Tsakani Maluleke has not finalized the 2024-25 audit reports for three major South African metros—Cape Town, Johannesburg, and Ekurhuleni—owing to disputes declared by the cities themselves. AGSA spokesperson Africa Boso confirmed that these matters are being resolved through established dispute procedures, without specifying details or commenting on potential changes in audit opinions until the reports are tabled.
Under the Municipal Finance Management Act, municipalities must submit financial statements by 31 August, with the AG required to deliver audit reports by 30 November. Cape Town submitted its statements on 29 August 2025, but a special AGSA report dated 26 January 2026 cited disputes and technical issues for the delay, pushing the submission deadline from 16 February to 26 February 2026. City spokesperson Luthando Tyhalibongo noted that the city declared a dispute in late January to allow further engagement, emphasizing it is within legislative rights to ensure accurate audit opinions.
In the 2023-24 audits, Cape Town maintained a clean opinion for the third year, while Johannesburg and Ekurhuleni received unqualified opinions with findings. Johannesburg has held this status for 10 years, and Ekurhuleni lost its clean audit in 2022-23 due to financial and governance issues flagged by the AG.
Good party councillor Suzette Little expressed concerns that such delays signal substantive disagreements on matters like revenue recognition or irregular expenditure, potentially affecting investor confidence and credit ratings. ActionSA's Michael Beaumont alleged on 11 February that the metros are regressing in audit outcomes and delaying tabling to amend results, though Cape Town denied any regression, stating the process is ongoing. Johannesburg spokesperson Nthatisi Modingoane said the audit is advanced and they are engaging with AGSA, while Ekurhuleni's Zweli Dlamini declined comment until finalization.
Earlier reports indicated the Johannesburg Stock Exchange warned these cities that their bonds could face suspension if audits are not delivered by month's end.
