A Qualified Audit Opinion
- Karen Scheepers
- 14 hours ago
- 2 min read
Merafong City Local Municipality has officially received a qualified audit opinion from the Auditor-General of South Africa for the 2024/25 financial year. While the audit confirms that the municipality’s financial statements were fairly presented in most material respects, it highlights a critical "but": the municipality could not provide sufficient supporting evidence for certain areas, specifically regarding the reliability of service billing information.
The Bright Side: Areas of Progress
Despite the qualification, the municipality is celebrating "notable progress." Management has successfully aligned the Integrated Development Plan (IDP) and the Service Delivery and Budget Implementation Plan (SDBIP) with legislative requirements.
Key successes include:
Clean Slates: No material findings were raised regarding asset management, strategic planning, performance management, or conditional grant compliance.
Administrative Diligence: Annual Performance Reports (APR) were submitted on time, and record-keeping has seen significant strengthening.
Governance: There has been a visible reduction in material irregularities compared to previous years, supported by improved oversight from the Council and Audit Committees.
Service Delivery Performance
Service Category | Infrastructure Coverage Rate | Details |
Electricity Supply | 98.1% | Households with access to electricity for lighting. |
Water Access | 95.9% | Households with piped water inside their dwellings. |
Sanitation | 94.1% | Households serviced with flush toilets. |
Waste Management | 82.3% | Households receiving weekly refuse removal services. |
The Friction: Key Challenges
The "qualified" status stems from systemic challenges that threaten financial sustainability. The core issue remains the reliability of source data for electricity and water billing, specifically actual meter readings.
Other hurdles include:
High distribution losses caused by ageing infrastructure, theft, and vandalism.
Weaknesses in ICT controls affecting audit trails.
Issues with unauthorised, irregular, and fruitless/wasteful expenditure.
Ongoing pressure on revenue collection and the enforcement of accountability.
The Road Map: Management Interventions
The municipality isn't just acknowledging these flaws; they are launching a multi-pronged recovery strategy:
Revenue Metering Integrity: A city-wide physical meter verification and system reconciliation program to restore billing accuracy.
Financial & Governance Controls: Enhancing oversight and strictly enforcing "consequence management" for lack of accountability.
Infrastructure Rehabilitation: Implementing technical interventions to reduce water and electricity losses through anti-tampering controls and repairs.
Continuous Assurance: Mandating the Internal Audit team to provide ongoing monitoring of billing and revenue processes to catch errors early.
Official Commitment
The statement concludes with a pledge from Council and Management to move toward a "clean" audit by ensuring transparency and financial sustainability.
Issued by: The Office of the Municipal Manager
Date: 02 February 2026
Media Enquiries: Mr. Thabo Moloja (tmoloja@merafong.gov.za)
Vision: An economically sustainable, community oriented and safe City.
Moving forward, Merafong City Local Municipality stands at a crossroads of progress and reform. By balancing high service delivery rates with a rigorous new "Revenue Metering Integrity" program, the leadership aims to bridge the gap between operational success and financial accountability. As the city works to turn these audit challenges into a blueprint for excellence, the focus remains steadfast on ensuring every drop of water and kilowatt of power is accounted for, paving the way for a more transparent and sustainable future for all residents.
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