Parliament, Monday, 25 May 2026 – The Standing Committee on Public Accounts (SCOPA) will this week hold hearings with Masilonyana Local Municipality and Msunduzi Local Municipality on their latest audit outcomes and Special Investigating Unit (SIU) investigations.
On Tuesday, 26 May 2026, the committee will hold hearings with the Masilonyana Local Municipality, followed by hearings with the Msunduzi Local Municipality on Wednesday, 27 May 2026. The hearings follow findings by the Auditor-General of South Africa (AGSA) and ongoing investigations by the Special Investigating Unit (SIU).
Masilonyana Local Municipality has now received disclaimer audit opinions for five consecutive years, from 2020/21 to 2024/25. This means the AGSA could not obtain sufficient evidence for almost 19 material areas in the municipality’s financial statements. The Free State Provincial Executive placed the municipality under administration in February this year in terms of section 139(1)(b) of the Constitution.
Fruitless and wasteful expenditure increased to R15.66 million in the 2024/25 financial year, pushing the total balance to R46.77 million. Most of this was caused by interest on overdue supplier accounts because creditors were not paid on time. Electricity losses increased to R20.46 million, while water losses climbed to R7.14 million.
The municipality also owes Eskom R253.7 million while generating only R25.3 million in annual electricity revenue. At the same time, repairs and maintenance spending remains low at only 1.25% of infrastructure assets valued at nearly R1 billion, increasing the risk of total infrastructure collapse. Only 45% of the municipality’s service delivery targets were achieved during the 2024/25 financial year.
The SIU investigation into Masilonyana has uncovered serious procurement irregularities linked to the refurbishment of the Brandfort Water Treatment Works and the upgrading of the Brandfort Sport Centre. The SIU is preparing disciplinary referrals against senior officials and criminal referrals to the National Prosecuting Authority.
On Wednesday, the committee will hold a hearing with Msunduzi Municipality. Msunduzi improved its audit outcome to an unqualified audit opinion with findings in 2024/25. The municipality incurred fruitless and wasteful expenditure of R114 million during the year under review and the closing balance of fruitless and wasteful expenditure now stands at R248.6 million. The municipality is also dealing with liquidity issues. Creditors wait an average of 191 days to be paid, far beyond the legally required 30 days, while 87% of accounts receivable have already been impaired because the municipality does not expect to recover the debt.
The SIU investigation into Msunduzi uncovered evidence of fraud, overpayments and misconduct linked to waste management contracts. The investigation resulted in five criminal referrals to the NPA, seven disciplinary referrals and civil litigation valued at more than R554 million. The SIU also confirmed that contracts worth R487 million were set aside.
The hearings will take place at Committee Room M514, Marks Building, Parliament, from 09:30 to 14:00 and again from 18:30 to 21:00 on both days.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON PUBLIC ACCOUNTS, MR SONGEZO ZIBI.
For media enquiries, please contact the committee’s Media Officer:
Name: Ms Faith Ndenze
Parliamentary Communication Services
Cell: 081 377 0686
Email: fndenze@parliament.gov.za
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