By Faith Ndenze
Parliamentary Communication Services
The Standing Committee on Public Accounts (SCOPA) will this week hold hearings with the City of Tshwane and eThekwini Metropolitan municipalities on the latest findings of the Auditor-General (AG) and investigations by the Special Investigating Unit (SIU).
On Tuesday, 12 May 2026, the committee will hear from the City of Tshwane Metropolitan Municipality, which received a qualified audit opinion for the third consecutive year after previously receiving an adverse audit opinion in 2021/22.
The municipality’s total expenditure increased to R50.31 billion in the 2024/25 financial year.
Eskom bulk electricity purchases alone amounted to R15.48 billion, accounting for nearly one-third of total expenditure.
Despite spending 103% of its operational budget, the municipality achieved only 53% of its planned performance targets.
The AG also raised concerns about escalating losses linked to basic services.
Water losses increased to R1.7 billion, while electricity losses rose to R3.27 billion.
The losses were linked to theft, illegal connections, meter tampering and weak controls. Debt impairment increased sharply to R5.56 billion as consumer debt reached R20.9 billion.
The municipality also owed Eskom and water boards R5.6 billion in arrears.
SCOPA will also question the municipality on SIU investigations relating to the Rooiwal Wastewater Treatment Works upgrades.
The investigation has so far resulted in 13 disciplinary referrals, six criminal referrals to the Hawks and National Prosecuting Authority, as well as referrals to the South African Revenue Services (SARS), Construction Industry Development Board (CIDB), National Treasury and the Companies and Intellectual Property Commission.
The committee will also receive an update on a second SIU investigation relating to a CCTV infrastructure tender.
The SIU found irregular contract extensions approved after the original contract had expired, ex-post facto payments made without a valid contract and payments made by the contractor to two municipal officials unrelated to the contract.
On Wednesday, 13 May 2026, the committee will hold a hearing with eThekwini Metropolitan Municipality.
The AG also identified major procurement irregularities:
including R1.54 billion in uncompetitive and unfair procurement deviations;
R311.76 million in irregular expenditure linked to supply chain management failures;
contracts awarded to employees’ spouses or business partners worth R6.16 million;
and contracts awarded to other state officials worth R3.63 million.
The AG found that non-revenue water losses increased to R2.92 billion in 2024/25, up from R1.99 billion in the previous financial year.
The AG attributed the losses to ageing infrastructure, burst pipes, illegal water connections and weak monitoring systems.
The AG audited seven infrastructure projects and found serious weaknesses in all seven projects, including delays, poor contract management and cost escalations.
Projects experiencing severe delays include the Etafuleni housing project, which is 11 years behind schedule; the Austerville electricity substation project, delayed for four years; and the Solomon Mahlangu Drive upgrade project, which has experienced delays and escalating costs.
SCOPA will also engage the municipality on several SIU investigations involving procurement irregularities and maladministration.
These include the ongoing investigation into water and sanitation contracts linked to Project Y6525AZ, as well as previous SIU investigations involving refuse bag tenders, Covid-19 PPE procurement, housing projects and VIP security contracts.
The SIU made ten criminal referrals to the National Prosecuting Authority, 111 disciplinary referrals, 29 criminal referrals and several referrals to SARS.
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