Africazine:
South Africa’s municipalities face significant financial challenges, prompting the South African Local Government Association (Salga) to hire more consultants.
Salga aims to address capacity constraints and improve audit outcomes, as 88% of municipalities currently rely on consultants. However, many of these municipalities still struggle to achieve clean audits, raising questions about the effectiveness of this approach.
Salga’s Strategy to Support Municipalities
Salga is increasing its consultant appointments to help municipalities overcome financial difficulties. Lerato Phasha, Salga’s portfolio head, emphasized the need to support and capacitate these local governments. Many municipalities lack full staffing in their finance departments, which exacerbates their challenges.
Despite the widespread use of consultants, the auditor-general reports that most municipalities are not achieving clean audits. Salga acknowledges the mixed results of consultant engagements, indicating that while some have produced positive outcomes, overall effectiveness remains a concern.
Financial Investment in Consultants
In the 2024/25 fiscal year, municipalities spent R1.6 billion on consultants, yet the value derived from this investment has been questioned. The auditor-general noted that issues in contract management contribute to the lack of value for money in these arrangements.
Salga’s role is primarily advisory, lacking executive power over municipalities. They provide guidance on consequence management and recruitment processes, aiming to enhance municipal capacity and accountability.
Next Steps for Municipal Improvement
- Salga will continue to appoint consultants to assist municipalities.
- Focus on improving contract management practices.
- Enhance recruitment processes for municipal staff.
- Monitor the effectiveness of consultant engagements closely.
Consultants are being brought in to tackle South Africa’s municipal financial challenges, but results remain mixed.
