Report reveals how municipal corruption fuels organised crime in South Africa

A new report has revealed that corruption in municipalities could be linked to organised crime. 

The report, conducted by the Institute for Security Studies (ISS) and Enact Africa, stated that although this is not organised crime in the usual sense of mafia-style syndicates trafficking drugs, arms, and people, it is both organised and criminal, unfolding within government, business, and in the often-hidden space between. 

The patterns, according to the report, involve gaining undue influence within government structures through irregular appointments, nepotism, and patronage; using this influence to manipulate and exploit legitimate systems for gain; and protecting illicit activities by various means, including administrative and violent methods.

The report was authored by Romi Sigsworh, who is a research consultant for the Justice and Violence Prevention Programme and Enact Organised Crime Programme at ISS. 

In her research, Sigworth has selected the North West Madibeng Local Municipality, the Eastern Cape OR Tambo District Municipality, and the City of Johannesburg as case studies. 

The research was conducted to map corruption incidents across the three municipalities over a 10- to 15-year timeframe. 

Madibeng has been plagued by numerous corruption allegations, including procurement fraud, tender rigging, and nepotism, leading to significant financial losses and service delivery failures. 

Madibeng was also ranked 19 out of 19 secondary city local municipalities in the North West province by the Good Governance Africa’s (GGA) Governance Performance Index (GPI) 2024, indicating that it was the worst-performing municipality in its category. 

OR Tambo was ranked 16 out of 21 district municipalities with water service responsibilities by the GPI in 2024. The district municipality has exhibited long-standing vulnerabilities, particularly concerning critical water infrastructure projects.

In March 2025, the Auditor-General (AG) flagged it for nearly R1 billion in unauthorised, irregular, fruitless, and wasteful expenditure. 

The City of Johannesburg was ranked fifth of eight metropolitan municipalities by the GPI 2024. In the 2023/24 financial year, the CoJ lost over R12 billion in unauthorised, irregular, fruitless, and wasteful expenditure.

Plagued by political instability and shifting coalitions over the last decade, four (Parks Tau, the late Geoff Makhubo, Kabelo Gwamanda, and the current Dada Morero) of the last 10 mayors have faced corruption scandals, while 11 of the city’s 13 utilities and agencies have accumulated years of reported corruption. 

However, the four mayors denied the allegations. 

The 2023/24 AG report also highlighted the dire and worsening state of financial dysfunctionality across most municipalities, with only 41 out of 257 municipalities achieving clean audits.

Sigworth stated that influence over decision-making, processes, systems, and appointments is vital for creating favourable conditions for illicit activities.

She said people willing to facilitate corruption can be inserted into or recruited from strategic positions in government and the private sector - both at bureaucratic and senior levels - through irregular appointments, nepotism, and patronage.

She added that employees can be incentivised to manipulate and exploit legitimate systems, gain access to important information and resources, and commit activities from within a structure. 

The protection of individuals, groups, and illegal activities, according to the report, can take several forms, such as:

• Ignoring investigation or audit recommendations,
• Corrupt networks closing ranks,
• Creating demand for corrupt services,
• Buying law enforcement protection, and
• Threats or intimidation.

“In all three municipalities, the practice of appointing political or familial connections places complicit individuals in positions that can shield perpetrators from whistle-blowing and reporting,” read the report.

It added that the mismanagement of municipal funds leads to disruptions in the provision of essential services, which can have health, environmental, and economic consequences. 

The report added that corruption scandals and service delivery challenges also result in an erosion of public trust, leading to protests and disengagement from participatory democratic processes.

Political analyst and governance expert Sandile Swana said this has been happening since the 1990s, when the ANC was about to obtain power in 1994. 

“These people captured the branches, regions, provinces, and the national structures. From the municipal point of view, they made sure that the councillors and the supply chain are also captured. Critical positions are the director of corporate services, the municipal manager, and the chief financial officer,” he said. 

Another governance expert, Professor William Gumede, said criminals, partnered with some politicians, also captured the procurement departments and municipalities.  

“The problem with the ANC is that criminals captured the local branches. What is needed is a new party at the local level, taking control and cleaning up,” he said. 

Political analyst Professor Andre Duvenhage said this resulted in many municipalities being dysfunctional, especially in the North West, Free State, and KwaZulu-Natal.

He added that the bodies that should monitor corruption in the municipalities, such as the oversight committees, lack capacity. 

The report recommended that the government should address accountability gaps by establishing what administrative and legal measures are necessary to ensure accountability, not only for lower-level actors but for those orchestrating the corruption. 

Questions were sent to the Department of Cooperative Governance and Traditional Affairs (CoGTA), which could not respond at the time of publication. 

The story will be updated when CoGTA responds. 

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