• ACTis has raised four flags for the City of Tshwane and placed three under monitoring.
• Findings from the Madlanga Commission and other investigations point to a shadow network abusing the City’s resources for their own gain, making the city a priority for state capture investigations.
• Numerous senior officials have been implicated in corruption involving security tenders.
• Inadequate consequences for officials involved in wrongdoing have driven impunity. However, the Madlanga Commission has prompted a series of suspensions, dismissals and investigations.
• The operational environment appears to enable corruption. The Auditor-General of South Africa (AGSA) has repeatedly highlighted weak financial controls, poor revenue management and ineffective debt collection. This has resulted in high levels of irregular expenditure, fruitless and wasteful expenditure and unauthorised expenditure.
• The City of Tshwane’s poor financial management, particularly over-expenditure and a lack of financial sustainability, poses a risk to service delivery. Expenditure cuts may be necessary, creditors may not be paid, and service delivery levels – already deficient in many areas – may deteriorate further.