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'Governance crisis in our municipalities is deepening'

'Governance crisis in our municipalities is deepening'

Eyewitness News10-06-2025

JOHANNESBURG - Cooperative Governance and Traditional Affairs (COGTA) Portfolio Committee Chairperson, Zweli Mkhize, has warned of a deepening crisis in local government due to financial ill-discipline and poor governance.
He also said that the latest audit outcomes confirm what the committee has witnessed during its oversight and will have a serious impact on service delivery.
Mkhize gave an update in Parliament on Monday as part of the governance cluster.
He said that the office of the Auditor-General (AG) tabled a report that shows that 59 percent of financial statements submitted for auditing by municipalities contained material misstatements
This despite municipalities having spent more than R1.4 billion on consultants to do the work.
"The latest audit outcomes presented to the Portfolio Committee on Cooperative Governance and Traditional Affairs by the Auditor-General for the 2023/24 financial year confirm what has long been evident from our oversight, that the financial and governance crisis in our municipalities is deepening, with profound consequences for service delivery and public trust."

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Here's how to kickstart your retirement plan today Appetite for financial literacy about retirement is strong 'However, the complexity and cost of available products can lead to underinsurance, opting out or delayed long-term planning. This group, especially those between the ages of 31 and 40, is also the most likely to cite rising living costs as a barrier to long-term planning. Compounding these decisions, many only start saving for the long term in their 40s.' That is why it is good news that the survey shows the appetite for better financial guidance is strong, with 64% of members saying regular financial education is very important and nearly half of employer funds supporting retirement planning in schools, while 49% of employer funds believe targeted communication could improve outcomes. Shoniwa says there is momentum, with nearly 60% of members reviewing their benefits in the past year, probably prompted by the introduction of the two-pot retirement system. 'As a result, 66% know the value of their savings and 59% understand how their investments are allocated. 'We see growing engagement but to truly close the gap, we must embed education more consistently, from the classroom to the payslip.' In addition, Shoniwa points out that no single player can fix the system. 'It requires aligned action from government, employers, advisers and administrators. Employers are uniquely placed to support members early. Guidance from the first payslip – particularly around group risk and preservation – can make a lasting difference. ALSO READ: We are living longer – how to plan for a long retirement Better communication needed He says retirement fund administrators must do more than communicate. 'They must deliver seamless advice, access and behaviour-linked incentives. Funds must also outperform and align with members' long-term goals. 'The 2025 Sanlam Benchmark data is more than a call to action – it is a roadmap. South Africans want better outcomes and they are ready to engage. What they need now is consistent education, clearer communication and simpler systems. 'What we do not know is already costing us but what we choose to teach and how we teach it together could change everything. Financial literacy is the foundation for a system that delivers not just outcomes, but dignity,' Mkhize says.

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