The recent report on local government audit outcomes by the Auditor General shows a steady trend towards good governance and sound financial management.

Deputy Minister for Cooperative Governance and Traditional Affairs Andries Nel said of the 278 municipalities, 148  – or 53% – now have unqualified audits, up from 120 last year.

A total of 198 or 58% of all 335 municipalities and municipal entities received unqualified audit opinions for their financial statements.

“This is up from 165 [49%] last year,” Nel said on Thursday in the National Council of Provinces during a debate on "Advancing the developmental agenda of municipalities for our people”.

He said it was significant that 76% of the total local government expenditure of R315-billion was spent by municipalities and municipal entities with unqualified audit opinions.

“What this means is that almost eight out of every ten rands spent by local government is properly accounted for,” Nel said.

The biggest contributors to the number of clean audits were Gauteng, KwaZulu-Natal and the Western Cape.

“These results were achieved through hard work, dedication, leadership and consistent hands-on engagement by, with and in municipalities,” he said.

Nel said the department was encouraged by the efforts of the leadership of the Mpumalanga province to improve service delivery at local government level.

The Oudtshoorn municipality in the Western Cape has now been placed under administration.

“In the North West, nine high priority municipalities have been identified that require support in all key performance areas. We have invoked Section 139 (1) b in some of these municipalities, such as Matlosana, Ngaka Modiri Molema, Tswaing and Ventersdorp,” he said.

This will bring stability to the council and administration, improve financial status, and improve the delivery of services.