Mathjabeng in financial freefall

Auditor-general Tsakani Maluleke has outlined how embattled ANC-led Mathjabeng Local Municipality ANC-led Mathjabeng Local Municipality incurred a deficit of R871.6 million for the financial year, with total liabilities exceeding assets by R5.8 billion. Maluleke’s report, dated 11 February 2026, covers the period from 1 July 2024 to 30 June 2025. She issued unqualified audit opinion on the municipality because the lack of reliable supporting data prevented her office from verifying several critical figures. Only 61% of the municipality’s planned targets were achieved even though it had spent 117% of its budget during the reporting period. The municipality owes Eskom more than R1.58bn and Vaal Central Water more than R6.84bn. Both accounts are long overdue. “Note 47 to the financial statements indicates that the municipality incurred a deficit of R871 618 930 during the year ended 30 June 2025 and as of that date, the municipality’s total liabilities exceeded its total assets by R5 879 577 803. The municipality also owed Eskom R1 586 717 577 (2024: R848 602 951) (debt relief portion: R5 250 339 733) (2024: R5 250 339 733) and Vaal Central Water R6 841 210 884 (2024: R5 841 839 566),” Maluleke’s report stated. Regarding service charges, the auditor general was unable to confirm R1.28bn in water and electricity revenue because the municipality relied on estimated billing instead of consumption data. On bulk purchases, electricity and water losses totalling more than R723 million could not be verified because units sold were not accurately tracked. Debt impairment — money owed to the municipality that is unlikely to be recovered — exceeded R6.7bn. Maluleke’s report also identified multiple errors in the reporting of net cash flows from operating and investing activities, while there was insufficient evidence for R135.6m in changes to net assets. The report further raised concerns about the municipality’s ability to continue operating and flagged financial mismanag