Fezile Dabi District Municipality Trust
The Fezile Dabi District Municipality Trust, an entity of the Fezile Dabi District Municipality in the Free State, has been recognised nationally for its financial discipline and good governance. The Trust received a Certificate of Achievement for attaining a clean audit outcome in the 2023/24 financial year.
The prestigious certificate was presented by the Minister of Cooperative Governance and Traditional Affairs, Mr Velenkosini Hlabisa, during the Local Government Indaba held at Gallagher Convention Centre in Midrand today. This award is widely seen as a milestone for accountability in public administration, at a time when most municipalities across South Africa continue to face serious governance and audit challenges.
The Municipal Manager, Mr Sipho Thomas, accompanied by the municipality’s Chief Financial Officer, Mr Mgcina, proudly accepted the award on behalf of the Trust, underscoring the entity’s role as a key driver of clean governance and proper financial management in the district.
Why the Award Matters
The Local Government Indaba, running from 2–3 October 2025, brought together over 1 000 delegates including ministers, MECs, municipal leaders, civil society and academics. The theme of the Indaba was revitalising municipalities, restoring public trust, and improving service delivery outcomes.
Part of the Indaba focused on Good Governance Awards, where municipalities and municipal entities that attained clean audits were recognised for excellence in managing public funds. Minister Hlabisa made it clear that clean audits must become the “baseline for every municipality”, not an exception.
In this context, Fezile Dabi District Municipality Trust’s award signals its growing reputation as a disciplined and accountable institution within local government structures. The clean audit is a significant shift from past audit outcomes, when the municipality faced challenges in meeting all compliance benchmarks.
Fezile Dabi’s Audit Journey
In the past, the Fezile Dabi District Municipality Trust had to work hard to overcome weaknesses in procurement, internal controls, and financial reporting. Audit outcomes from earlier years showed room for improvement, with the Auditor-General flagging gaps that needed urgent attention.
Over the 2023/24 financial year, however, a deliberate turnaround strategy was implemented by the Municipal Manager and his team. With stronger oversight, the entity successfully eliminated irregular expenditure, tightened compliance with the Municipal Finance Management Act (MFMA), and introduced stricter monitoring of contracts and payments.
This sustained effort has now culminated in the Trust’s first clean audit outcome — a recognition that no material financial misstatements or compliance failures were found by the Auditor-General.
Municipal Manager’s Reaction
Speaking after receiving the certificate, Municipal Manager Sipho Thomas hailed the award as a victory for good governance and a reward for years of disciplined effort. He was joined by CFO Mr Mgcina, who was instrumental in ensuring financial systems were strengthened.
Mr Thomas shared four key reflections:
“We are humbled and proud to accept this Certificate of Achievement for a clean audit in 2023/24. This milestone would not have been possible without the dedication, integrity and hard work of our officials, audit committee, council, and oversight structures.”
“Our journey towards this outcome was deliberate and difficult. We had to strengthen internal controls, tighten procurement processes, and ensure compliance with every aspect of the MFMA. The role of the CFO’s office was central in aligning our systems with national Treasury standards.”
“This recognition motivates us to continue raising the bar. A clean audit is not a once-off; it is a standard we must uphold consistently to serve the people of Fezile Dabi with excellence.”
“Above all, we dedicate this award to the residents of our district. This achievement is about their trust in us and our duty to deliver services with transparency, accountability and integrity.”
The CFO’s Role
Accompanying Mr Thomas was Chief Financial Officer (CFO), Mr Mgcina, whose department carried the operational responsibility of ensuring that all financial records, statements and reports met the Auditor-General’s standards.
The CFO’s leadership has been credited with ensuring clean reconciliations, reducing irregular expenditure, and aligning the Trust’s internal financial systems with best practice. His presence at the Indaba symbolised the teamwork between political oversight, administration and finance in achieving this clean audit milestone.
Why Clean Audits Are Critical
Clean audits are more than a compliance requirement — they directly affect public confidence and service delivery. Municipalities with clean audits are better positioned to:
- Attract investment and partnerships due to transparent governance.
- Minimise risks of corruption, mismanagement, or fraud.
- Ensure that limited public funds are directed where they are most needed.
- Deliver services without disruption from financial irregularities.
Across South Africa, the Auditor-General’s reports have repeatedly shown that many municipalities are struggling. As of mid-2025, only a small portion of municipalities had achieved clean audits, sparking calls for governance reforms. Fezile Dabi’s achievement, therefore, stands out as both rare and exemplary.
The Bigger Picture: Local Government Indaba 2025
The Local Government Indaba 2025, hosted by Minister Hlabisa, has been designed as a platform to revitalise municipalities and restore trust in local government. The Indaba has put emphasis on:
- Audit outcomes and governance — with awards incentivising best-performing municipalities.
- Service delivery improvements — focusing on infrastructure, water, sanitation, and waste management.
- Leadership and skills development — addressing capacity gaps in municipalities.
- Public trust and accountability — tackling corruption and ensuring transparency.
Fezile Dabi District Municipality Trust’s recognition came at a time when the Indaba was calling for municipalities to “work differently” and embrace clean audits as a cornerstone of rebuilding trust.
Sustaining the Momentum
While the award is a major achievement, experts have warned that clean audits must be sustained through continuous monitoring. For Fezile Dabi District Municipality Trust, the road ahead will involve:
- Maintaining strong internal controls to prevent financial misstatements.
- Continued oversight by the CFO’s office and audit committee.
- Supporting local municipalities within the district to strengthen governance across the board.
- Ensuring service delivery performance reports are as reliable as financial statements.