Cape Town welcomes unqualified audit opinion for 2024/25 financial year
27 March 2026
The City of Cape Town welcomes the unqualified audit opinion received from the Auditor General for the 2024/25 financial year. This is the 20th consecutive unqualified audit opinion the City has received since 2006, underscoring that Cape Town is the only metro administration in South Africa built on good governance and the careful stewardship of public funds.
The City welcomes the AG’s confirmation of Cape Town’s unqualified and sound financial management, and notes that the AG has raised a non-financial finding relating to process, which the City regards as being without merit. The City submitted comprehensive representations to the AG and is further considering whether the finding warrants judicial review.
The AG’s technical finding concerns certain Bid Evaluation Committee (BEC) processes and is non-financial. The City is of the view that these processes are fully compliant with Municipal Supply Chain Management Regulations. In summary, the AG’s disputed finding relates to:
The nature of documentary proof relied on by a BEC for one company’s proof of registration with a bargaining council (note: the company was indeed correctly registered as required)
Whether a BEC was entitled to take into account a bidder’s prior track record of performance with the City if they previously traded under a different legal entity
Whether a BEC may take into account a bidder’s track record by considering past contractual work done for the City. In particular, we believe this principle may require testing and clarification through legal review. It is essential for us to take into account previous failures by bidders in assessing their bids for future contracts.
In each of these instances related to the AG’s technical finding, the City demonstrated compliance with Municipal Supply Chain Management regulations, in both substance and purpose.
Given that the AG’s dispute resolution process did not result in a change in the finding, the City is now considering whether this warrants judicial review, where it may be important to test legal principles.
The AG’s recognition of Cape Town’s unqualified finances and sound financial management is most welcome, and residents can rest assured that public finances are respected in this city.
End
Published by:
City of Cape Town, Media Office
