Scopa will intensify oversight of municipal finances after its chair, Songezo Zibi, warned that dysfunction at local government level was undermining infrastructure spending and economic recovery.
Addressing the finance cluster media briefing on Monday following the tabling of the 2026 budget, Zibi identified municipal financial management as a priority area for the committee, with more than R1-trillion in infrastructure spending being projected over the medium term.
This figure comprises R577bn by state-owned companies, R217bn by provinces and R205bn by municipalities, with a further R5.8bn allocated to Prasa for rolling stock renewal.
Zibi said too much of the money allocated for social and economic development is lost to poor financial management, administrative failures and corruption.
Zibi said he remains concerned about what he described as the “obstructive role municipal dysfunction is playing in our economic recovery efforts”. He said municipal public accounts committees appear weak and ineffectual, and pointed to what he termed a culture of impunity in key infrastructure projects.
In the coming weeks, Scopa will host two Eastern Cape municipalities previously visited on oversight. Zibi said briefings from the auditor-general and the Special Investigating Unit indicate that the situation remains “deeply concerning”.
He said the committee will examine both the amount and the quality of spending on local infrastructure maintenance and renewal, arguing that economic growth is constrained where businesses must contend with water disruptions and poor road infrastructure.
The remarks come as Parliament begins processing the fiscal framework and revenue proposals, the first step in the budget cycle.
Zibi said Scopa will focus on selected national departments, state-owned companies, metros and municipalities as part of its oversight strategy adopted last year.
He also highlighted weaknesses in project and contract management across the government, saying contractors are sometimes paid despite missing critical deadlines, with limited attempts to recover funds. He called for a broader skills review within the state to address this.
Between now and Easter, Scopa will call several state-owned entities, departments and municipalities before it. The committee is also finalising its report on the Road Accident Fund, which Zibi said will show significant financial leakages linked to mismanagement and poor oversight.
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