Annual Report exposes Polokwane’s worsening service delivery despite improved audit

Issued by Cllr. Jacques Joubert – DA Spokesperson on Finance | Polokwane Municipality
02 Feb 2026 in Press Statements

The Democratic Alliance (DA) in Polokwane is deeply concerned that, despite an improved audit outcome, service delivery in the municipality continues to deteriorate.

The 2024/2025 Annual Report, tabled last week, reflects an unqualified audit opinion with fewer findings than the previous financial year. However, this improvement has not translated into better service delivery for residents.

National Treasury norms require municipalities to spend at least 8% of their budget on maintenance, yet Polokwane spent only 5% during the year under review. This unfocused and frankly reckless approach by the ANC-led administration exposes its misplaced priorities: while water infrastructure is beyond dilapidated, funds are consistently available for lavish out-of-town excursions.

As a result, roads are crumbling, parks and sidewalks are neglected, streetlights remain non-functional, and water losses have escalated sharply. The Auditor-General (AG) reported that water losses increased to 33%, up from 24% in the previous year.

This represents a financial loss of R112 821 386, compared to R68 506 298 the year before.

Electricity losses have also increased to 12.33%, amounting to a staggering R146 318 225. Combined water and electricity losses for the year exceed R250 million.

Even more alarming are the second-quarter audit reports for the current financial year, which indicate a further deterioration, with water losses rising to 38% and electricity losses to 13.78%.

The audited annual financial statements further revealed:

  • Unauthorised expenditure: R234 479 032
  • Irregular expenditure: R222 039 795
  • Fruitless and wasteful expenditure: R10 861 767

The AG also raised serious concerns regarding poor project management, including R2 198 470 paid to a contractor for standing time due to inadequate planning.

The DA in Polokwane will closely monitor the court-driven recovery of R16 680 257 paid in advance for four buses that were never delivered, as well as disciplinary and criminal action against officials implicated in the irregular tender award identified in the 2023 Bowman Gilfillan forensic report.

The ANC-led administration is clearly failing the residents of Polokwane in its duty to deliver basic services.

We urge residents to ensure they are correctly registered to vote and to make their voices heard at the ballot box during the local government elections later this year.