A recent Auditor-General report has noted that Mangaung and Masilonyana municipalities in the Free State province are so poorly run that they’re actively harming their residents.
The poor state of municipalities in the Free State has been a concern for many years, with infrastructure collapse becoming a defining feature of the province’s rural communities.
Roads are crumbling, water and sanitation systems are failing, and many towns face persistent power disruptions.
Years of poor governance, mismanagement, and political instability are at the heart of this decay.
For the last two years, the Auditor-General (AG) of South Africa has highlighted widespread governance failures in Free State municipalities.
According to the AG reports, not a single municipality in the province has received a clean audit for the 2022/23 and 2023/24 financial years.
Additionally, at the end of 2024, the South African Human Rights Commission (SAHRC) published a report of its inquiry into service delivery at the local government level in the Free State.
According to the commission, the inquiry was necessitated by complaints regarding lack of access to water, electricity, housing, sanitation and refuse collection, which have remained amongst the highest complaints received.
[Some of the report’s findings included:]
*High vacancies at both managerial and technical levels of municipalities,
*Failures to deal with infrastructure maintenance and poor road infrastructure,
*Inadequate or weak refuse removal services, and
*Revenue collection challenges threaten municipalities’ financial viability.
The report noted that local municipalities violate constitutional and statutory obligations by allowing sewage spillages to contaminate water sources and the environment.
The report also found that some municipalities violate sections 27(1)(b) of the Constitution and regulations 2, 3, and 4 of the Regulations relating to compulsory national standards and measures to conserve water.
Another finding was that some local municipalities in the Free State are highly indebted to Eskom and water boards.
The challenges of vandalism, theft, and unlawful connections to water and electricity networks are some of the findings contained in the report.
Despite the SAHRC’s warnings and recommendations to address the province’s challenges, the situation in the Free State has worsened.
This was highlighted by a recent report published by the AG on Tuesday, 13 May 2025, which painted a very grim picture of two municipalities in particular.
[Free State municipalities are causing harm]
Two municipalities in the Free State province are actively harming the communities they’re meant to serve.
This is the bleak conclusion of the AG’s latest report, presented to Parliament’s Standing Committee on Public Accounts.
The city press reported that it exposed an alarming degree of institutional collapse in the Mangaung Metropolitan Municipality and the Masilonyana Local Municipality.
The news publication reported that the AG blamed this collapse on mismanagement, corruption, and a shocking disregard for basic governance.
It also noted that findings are more than just another set of poor audit outcomes. They reveal a humanitarian crisis, where lives are being affected but by active failures in infrastructure, oversight, and service delivery.
The AG detailed how critical projects, meant to ensure water, sanitation, and clean environments, are either stalled, abandoned, or dangerously mismanaged.
Despite being under national intervention for years due to its persistent dysfunction, Mangaung Metropolitan Municipality in the Free State has continued to spiral.
The AG’s report painted a picture of a city where financial decisions bear little relationship to actual service delivery, and where management is either incapable or unwilling to enforce accountability.
It noted that Mangaung recorded R1.34 billion in unauthorised expenditure. On top of that, R277 million in irregular expenditure and R123 million in fruitless and wasteful expenditure were incurred.
Much of this is linked to failed projects and avoidable interest payments. The municipality also owes a staggering R922 million to water boards, while nearly half of its water supply has been lost through leaks or theft.
Although the metro had a capital expenditure budget of R792 million within its broader R6 billion budget, it still spent 111% of its total budget.
This overspending translated into achieving only 45% of its service delivery targets, highlighting a severe disconnect between financial inputs and tangible outcomes.
The AG warned that the municipality’s financial health is so fragile that its ability to continue as a going concern is now in doubt.
A key driver of this collapse is a critical shortage of skilled personnel. The directorate responsible for infrastructure and technical services operates with a 62% vacancy rate, leaving it unable to manage or oversee essential projects.
Compounding the crisis are widespread failures in planning, contract management, and performance monitoring.
In total, 17 material irregularities, including breaches of contract and environmental laws, were flagged in Mangaung. However, no disciplinary action or recovery of funds was initiated until the AG formally intervened.
Without urgent reforms, such as proper staffing, functioning project management units, and strict financial controls, Mangaung is poised to deteriorate even further, deepening the crisis for its residents.
The AG report noted that if Mangaung is collapsing, Masilonyana Local Municipality, which covers towns like Theunissen and Winburg, has ceased to operate.
The AG issued a disclaimer audit opinion, the worst possible outcome, indicating that no reliable financial information could be obtained.
The municipality failed to submit its financial statements on time, and crucial records such as trial balances were not prepared at all.
The audit uncovered R112 million in irregular expenditure, although the actual figure is likely much higher due to the absence of records.
Fruitless and wasteful expenditure reached R39 million. Additionally, over R1.1 billion in unauthorised expenditure from the previous year was “reversed” on the books, without any supporting evidence or justification.
Internal controls and recordkeeping systems have completely collapsed. Despite significant budget allocations, not a single service delivery target was met during the year.
The AG also highlighted that the annual performance report was unreliable and failed to comply with legal standards, making it impossible to track the municipality’s performance or progress.
Infrastructure projects in Masilonyana are riddled with poor planning, delays, cost overruns, and outright vandalism.
Despite the damning finding, the report further noted a lack of consequence management in both municipalities.
The AG flagged that investigations were never launched and that disciplinary boards were either dormant or nonexistent.
It added that no individuals were held accountable for financial misconduct. “No action was taken to recover losses, investigate wrongdoing or prevent recurrence.”
Faced with persistent noncompliance and negligence, the AGl has warned that it may invoke its expanded powers under the Public Audit Act.
This includes issuing certificates of debt to recover funds directly from officials and referring cases for criminal investigation or prosecution.
It added that the communities affected by this breakdown in governance are living without the most basic services and are exposed daily to environmental and health hazards.
The AG said that without swift and decisive action, these municipalities may fail to recover and cause irreparable damage to the lives of the people they are meant to serve.