JB Marks records financial constraints in AG's report for 2024/25 financial year

The JB Marks Municipality is one of 62 local municipalities nationwide who are in financial distress according to the consolidated Auditor General Report for the 2024/2025 financial year that was release on June 24.

According to the Auditor General of South Africa, Tsakani Maluleke, the JB Marks Local Municipality had been in a concerning financial position for the past two financial years (2023/24 and 2024/25).

On aggregate, unauthorized, irregular, fruitless and wasteful expenditure had amounted to over R 1.2 billion over the course of two years.

The AG report also focused 27 instances related to the supply and delivery of mini substations; investigation of unauthorised, irregular, and fruitless and wasteful expenditure as well as security services that were not provided due to inadequate storage controls.

Another concerning finding was that the Municipal Manager and Chief Financial Officer appointed Management Consultants with the payment of R 34 million to perform MFMA and Municipal Finance Work Outputs and the compilation of the 2024/25 Annual Financial Statements.

The problematic issues of revenue collection were also pointed to in the AG Report.

“At JB Marks, we notified the accounting officer of an MI in December 2025 after the municipality had failed to take reasonable measures to collect revenue owed by customers.”

The JB Marks Municipality approved the budget for 2026/27, despite concerns from opposition parties in Council. One of the reasons for optimism according to JB Marks Executive Mayor, Gaba Thithiba Ka Qhele was the municipality had achieved the first unqualified audit since 2016. This though does not paints the full picture of the expenditure issues that have plagued the local municipality.

The Auditor General was frank in her assessment of the importance of functioning local municipalities.

“Local government requires fundamental and far-reaching reform, driven by capable, collaborative and ethical leaders that are committed to building municipalities characterised by sustained institutional performance, accountable leadership and officials, transparent systems and processes as well as strong institutional integrity.”

“The legislative framework clearly defines the respective responsibilities of mayors, councils and executive authorities. However, what remains insufficient is the consistent, diligent and effective execution of these responsibilities,” stated Maluleke.

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