The best-run municipality in Gauteng

Only one municipality in Gauteng has managed to maintain a clean audit opinion since 2019/20, and that is the Midvaal Local Municipality.

Not only does this make it the best-performing municipality in the province, but it is also one of the top in the country, having achieved the audit outcome for 11 consecutive years.

This is according to the Auditor-General of South Africa’s (AGSA) consolidated report on its assessment of the financial records of the country’s 257 municipalities.

The Midvaal Local Municipality is part of the Sedibeng District Municipality and is home to 112,254 people and roughly 45,150 households.

Governed by the Democratic Alliance, major towns include Meyerton, Randvaal, Daleside, Henley-on-Klip, Walkerville, and De Deur.

According to the AGSA, more than 90% of people living in the municipality have access to piped water, 93% have electricity for lighting, and 94% have access to flush toilets.

It has also attracted significant investment from the private sector, with Sedibeng Breweries, the South African distributor of Heineken, having their national offices located there.

As for the political composition of Midvaal LM, the DA holds a majority in the 30-seat council, with other parties such as the ANC, EFF, VF+, and Traditionalist Youth Movement (TYM) comprising the rest of the leadership.

Of the 15 ward councillors, 12 represent the Democratic Alliance, while the remaining three represent the African National Congress.

Of the 15 proportional representation councillors, seven are from the DA, three from the ANC, two from the Economic Freedom Fighters, two from the Freedom Front Plus, and one from the TYM.

Receiving a clean audit for the eleventh consecutive year makes it one of only 25 municipalities to achieve the outcome for four or more consecutive years.

This is a significant achievement when compared with the audit opinions of other municipalities nationwide.

There are five types of audit outcomes given by the AGSA. The best result is a clean audit, which means that no misstatements were found in an entity’s financial reporting.

Only 41 municipalities (16%) achieved this outcome, painting a bleak picture of the state of many municipalities in South Africa.

This is followed by a financially unqualified outcome, which contains no material misstatements; however, issues have been raised regarding the entity’s reporting.

Ninety-nine municipalities received this type of audit outcome.

If a municipality receives a qualified audit outcome, it means the AG has determined that its financial reporting contains material misstatements in specific amounts. This was found to be true for 90 municipalities.

An adverse audit outcome means material misstatements have been found which are not confined to specific amounts, as was the case for six municipalities.

The final outcome is a disclaimer of audit opinion, meaning that the entity provided insufficient documentation to make an audit decision. Eleven municipalities received disclaimed audit opinions.

‘A culture of accountability and strong consequence management’

Midvaal LM mayor Alderman Peter Teixeira told Newsday that the municipality has been able to achieve a clean audit for eleven consecutive years “by building a culture of accountability and strong consequence management.”

“There is a combination of strong political will from public representatives who sit in council and are eager to serve the people they represent,” he said.

“The municipality also places strong emphasis on hiring highly dedicated, qualified, and fit-for-purpose staff members.”

Teixeira explained that leaders, senior managers, and staff members are held to a high standard, with checks and balances in place to ensure that rates and taxes collected are used to improve service delivery.

He said the municipality has emphasised that clean audits must translate into tangible service delivery that residents “can feel, touch, and see.”

When asked about political stability, he said that it has helped maintain systems and policies that allow for the longevity of institutional memory.

This has helped it strengthen its financial leadership processes, internal controls, and accountability mechanisms.

“Clean audits are a key component of good governance as they reflect proper financial management and show accountability in how public funds are utilised,” Teixeira said.

“However, good governance goes beyond clean audits and financial compliance. Good governance includes a government that engages its residents and is responsive to their needs.”