By Teboho Moloi
BETHLEHEM – After nearly 10 years of adverse and qualified audit outcomes, the Dihlabeng Local Municipality has achieved an unqualified audit opinion for the 2024/2025 financial year.
The Auditor-General (AG) of South Africa presented the findings during a council sitting at the Bethlehem Town Hall on Thursday, 29 January 2026, describing the municipality as having shown significant improvement, although serious challenges remain.
AG Mafoketso Kgaile said while the unqualified opinion marked a major turnaround for the previously “distressed” municipality, it fell short of a clean audit.
“There has been clear progress in governance, compliance with legislation and performance reporting, but more work is required before a clean audit can be achieved,” Kgaile told councillors.
One of the major factors behind Dihlabeng’s historic audit failures, the AG noted, was the long absence of an internal audit committee, which severely weakened oversight and accountability.
Kgaile welcomed the recent appointment of the internal audit committee and the work of the Municipal Public Accounts Committee (MPAC), but said the delay had cost the municipality.
“It is unfortunate that the internal audit committee was only appointed late last year. Had this been done earlier, the performance audit outcome may have been better,” she said.
The AG’s report also found weaknesses in municipal performance management, including poorly defined and unmeasurable indicators, as well as inconsistencies in reporting.
Further concerns highlighted included the municipality’s failure to honour its debt repayment agreement with Eskom, a vacancy rate of 48%, and losses exceeding R2 billion due to outsourcing. The AG called for the finance department to be stabilised through the appointment of permanent staff.
Executive Mayor Tseki Tseki credited the improved audit outcome to the collective effort of council, management, municipal staff and residents.
“This audit outcome reflects hard work and commitment. We have taken the Auditor-General’s recommendations seriously and will use them to guide the new financial year,” said Tseki.
He urged residents to continue supporting council decisions, saying they were made in the best interests of the community and the future of the municipality.
Council Speaker Nthabeleng Mofokeng described the achievement as the result of difficult but necessary reforms.
“The journey was not easy. We had to put our house in order under severe distress, while ensuring information was submitted on time to assist the Auditor-General,” she said.
“Now the challenge is to maintain and improve on this standard.”
The official opposition, the Democratic Alliance, welcomed the audit outcome but called for a stronger MPAC, improved financial discipline and firm consequence management.
The opposition Economic Freedom Fighters (EFF) also welcomed the report, but cautioned that some findings lacked sufficient supporting evidence.
