Integrity Watch Free State Slams MEC Mokoena’s ‘Misleading’ Praise Amid AGSA Confirmation of Maluti-A-Phofung Compliance Breaches
The Auditor-General of South Africa (AGSA) has flagged serious lapses in financial reporting at the Maluti-A-Phofung Local Municipality, sparking fresh concerns over governance and accountability in the Free State. In a special report dated 2 December 2025, AGSA confirmed that the municipality missed key deadlines for submitting annual financial statements, breaching the Municipal Finance Management Act (MFMA).
This failure adds to a long history of mismanagement, with residents bearing the brunt through poor service delivery and ongoing crises in water and infrastructure. Amid the backlash, Integrity Watch Free State has condemned MEC Saki Mokoena’s recent praise of the municipality as misleading, calling for urgent probes and greater transparency to restore public trust.
As South Africa grapples with municipal failures nationwide, this case highlights the urgent need for stronger oversight and consequences for non-compliance. With protests and calls for intervention growing, the spotlight is on provincial leaders to act decisively.
AGSA Raises Alarm Over Missed Deadlines and Ongoing Regression
In its report to the municipality’s speaker, AGSA noted that the accounting officer failed to submit the annual financial statements for the year ended 30 June 2025 by the required deadline of 30 November 2025. This breach of MFMA sections undermines transparency, making it hard to track how public funds are used. AGSA has informed Parliament and the Free State Legislature, stressing the need for regular updates on such failures.
The municipality has a pattern of poor performance, with audits remaining unfinished for four straight years due to missing documents and discrepancies. Past reports show disclaimer opinions, where auditors could not verify the statements because of weak evidence or big irregularities. This ongoing slide points to deeper problems in leadership and financial controls, leaving the door open for waste and possible corruption.
Delays Hit Municipal Water Entity, Worsening Service Woes
The issues extend to Maluti-A-Phofung Water (Pty) Ltd, the entity handling water services. In a separate report to the board chairperson on 2 December 2025, AGSA said the financial statements were submitted late on 30 November 2025, missing the three-month deadline after receipt. This has delayed the regularity audit, with no report issued by the due date.
Such hold-ups link to wider service breakdowns, including underused grants and stalled projects. Parliamentary oversight has flagged ineffective fixes in audit plans, hurting communities that rely on clean water and sanitation. Residents in areas like Harrismith and QwaQwa have faced outages and contaminated supplies, fueling protests over basic rights.
Municipal Manager in the Spotlight for Compliance Failures
Municipal Manager Advocate Mzwakhe Mofokeng, as the accounting officer, is directly responsible for these lapses. AGSA’s findings put him under scrutiny, with calls for probes into potential mismanagement. Parliamentary committees have urged action, noting this fits a trend of governance slips.
Efforts to get answers from the municipality went unanswered. Questions on the delay’s causes and planned fixes were sent to the communications office, but no reply came by publication time. This silence raises more doubts about openness in a place already criticised for poor handling.
MEC Mokoena’s Praise Sparks Confusion and Criticism
Adding to the mix-up, MEC for Cooperative Governance and Traditional Affairs (COGTA) and Human Settlements Saki Mokoena praised the municipality on social media on 5 December 2025. He congratulated them for submitting statements prepared in-house without consultants: “Thank you MAP municipality for the submission of your Annual Financial Statements. Internally prepared and finalized with no use of consultants. Lets consolidated the capacity build.”
This applause clashes with AGSA’s reports on late or missing submissions, suggesting a gap between provincial views and national audits. It has drawn fire for possibly misleading the public on the true state of finances.
A Long History of Financial Troubles and Corruption Claims
Maluti-A-Phofung’s woes go back years, with unauthorised spending, fraud claims, and weak controls. In February 2025, the Democratic Alliance demanded accountability after the municipality wrote off R4.6 billion in irregular costs. Eskom debt has spiralled, with non-payment chains and ‘ghost vending’ adding to losses.
Recent scandals include a senior manager signing a R27 million debt deal with a relative’s firm, and arrests like a former manager for fraud in November 2025. Protests in Harrismith blame corruption for service halts, turning the area into a sign of neglect. Debt has ballooned to over R7 billion, hitting the poorest hardest.
Growing Demands for Probes and Oversight
Parliament’s Standing Committee on the Auditor-General backs AGSA’s push for accountability. Parties like ActionSA call for administration, citing financial collapse. EFF branches have protested, demanding fixes.
Auditor-General Tsakani Maluleke urges lawmakers to intervene, noting timely reports build trust.
Integrity Watch Free State Leads the Charge Against Failures
Integrity Watch Free State has slammed the delays as a betrayal of trust. “This is not just administrative oversight; it’s a systemic failure that allows corruption to thrive unchecked, leaving residents without essential services,” their statement said.
They point to billions in unauthorised spending written off without fallout, hitting rural areas hard. “For years, Maluti-A-Phofung has regressed in its audit outcomes, with billions in unauthorised expenditure simply written off without consequence. This pattern not only wastes taxpayer money but also perpetuates inequality in service delivery, hitting the poorest communities hardest.”
The group warns Mokoena’s praise erodes accountability efforts. “Applauding late or incomplete submissions sends the wrong message and erodes confidence in government institutions. We demand transparency on why these delays persist and call on residents to join us in pushing for real change, including criminal probes into any fraud or negligence.” They pledge to keep watch and push for fixes in Free State local government.
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