Voters will head to the ballot box in November to elect municipal leaders, but much of the attention six months out has been on senior municipal employees.
This week, a corruption-accused city manager returned to his post following a high-profile bail application, drawing an uproar from political opposition.
Additionally, the Department of Cooperative Governance and Traditional Affairs (Cogta) recently disclosed how many senior officials have been identified as either unqualified or compromised.
While municipalities are drowning in debt, the Auditor-General of South Africa in April noted that the top 16 unelected city officials across the eight metropolitan municipalities were collecting more than R44 million in annual remuneration.
A risk and governance analyst warned that local government was “the frontline of the investment climate” and that the country’s risk profile was dependent on basic service delivery.
Municipal officials disciplined
The recruitment of senior municipal staff is a local government function covered by the Municipal Systems Amendment Act of 2022 and by sections 152 and 153 of the Constitution of the Republic of South Africa.
Cogta said the 2022 amendments had allowed the department to strengthen oversight and had given national bodies greater powers to intervene.
Cogta’s response to a series of written parliamentary questions stated that since Minister Velenkosini Hlabisa had taken office in 2024, 35 non-compliant appointments had been identified.
Non-compliance in these matters related to recruitment based on competency, minimum qualification requirements or restrictions on senior officials holding political office.
The 35 identified appointments came from eight provinces, all except the Northern Cape.
KwaZulu-Natal (KZN) had the most with seven identified appointments, while the other seven provinces ranging between three and six non-compliant appointments each.
Additionally, 65 officials were disciplined or dismissed by Cogta since 2024 for “audit-related misconduct”, primarily for procurement irregularities.
“Provincial governments exercise oversight, while the minister monitors compliance based on reports submitted under the Act,” the department stated.
Basic services needed for growth
Executive Director at the Centre for Risk Analysis (CRA), Chris Hattingh, stated that while national policy entices investors, municipal performance “determines whether that interest converts into a decision to invest”.
He explained that reliable basic services and administration were infinitely more important than political rhetoric.
“Investors are not looking for aspirational messaging from municipalities. They want evidence of administrative competence,” Hattingh told The Citizen.
He said these services extend to “baseline conditions for business viability”, including modern and efficient development approval processes.
“A municipality that can demonstrate a track record of service delivery and financial accountability is a competitive asset,” said Hattingh.
“Most South African municipalities cannot make that case, and until they can, the messaging gap between what local government says and what investors experience on the ground will continue to undermine confidence,” Hattingh explained.
Ekurhuleni city manager case
One of the city managers under fire is Ekurhuleni municipality’s Kagiso Lerutla, who is out on bail on fraud and corruption charges.
Lerutla returned to work on Monday after a voluntary leave period, but the Democratic Alliance has urged the city’s council to place him on precautionary suspension.
DA Ekurhuleni mayoral candidate and member of the Gauteng legislature, Khathutshelo Rasilingwane, called Lerutla’s return to work a “slap in the face” delivered by mayor Nkosindiphile Xhakaza.
“Xhakaza had the opportunity in the last council meeting to act in the best interests of the city, and suspend Lerutla, he did not.
“Instead of choosing accountability, he feigned confusion and asked that he be allowed to seek a legal opinion, despite having had several weeks at his disposal to do so,” stated Rasilingwane.
The City of Ekurhuleni was contacted by The Citizen for comment on Lerutla’s return, and its feedback will be added once forthcoming.
Cogtainterventions
Cogta was also asked what was being done to address financial misconduct, weak consequence management and prolonged acting appointments,
On consequence management, the department said National Treasury had integrated a consequence framework, and a local government anti‑corruption forum had been established.
Regarding financial misconduct, matters were referred to the Special Investigating Unit, the Hawks, and the National Prosecuting Authority, while the resulting acting appointments were monitored by the minister.
The department was also asked how disciplinary measures against municipal officials were tracked, with it admitting it was still constrained in this area.
“No direct targets for disciplinary finalisation are maintained, as municipal councils are the employers and are responsible for disciplinary processes.
“No central dataset on criminally charged officials exists due to law enforcement jurisdiction,” the department stated.
Test for the GNU
Hattingh warned that if the status quo remains after the November vote, “several risks compound simultaneously”.
He said this would feature accelerated infrastructure degradation, deepening investment deterrents, political instability and ultimately, a “structural stress test” of the government of national unity (GNU).
“Each year of municipal failure narrows the window for South Africa to attract the fixed capital investment it needs for growth.
“Investors facing a choice between comparable emerging markets do not wait for governance reform cycles to complete,” said Hattingh.
“Coalition arrangements at local level are more fragile than at national level.
“If the 2026 results produce hung councils across major metros and coalition formation breaks down, the narrative of managed political transition that has partly sustained investor sentiment since May 2024 unravels,” he concluded.
