Municipal Consultant Spending Hits R1.5 Billion

Parliament's committee criticises municipal reliance on consultants as costs rise sharply over more than a decade.

Updated on Nov. 2, 2026 in City Hall

Municipal Consultant Spending Hits R1.5 Billion

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Parliament's Portfolio Committee on Cooperative Governance and Traditional Affairs has criticised municipal spending on consultants, which now totals about R1.5 billion, up from roughly R500 million 10 to 15 years ago. Committee members said costs have tripled over the past few years even as municipalities continue to struggle with performance and capacity.

Why it matters

Mkhize said consultants were meant as a temporary intervention but have become a permanent feature of municipalities, with few seeing audit outcomes improve as a result. The government is revamping the local government system and reviewing its funding, and some non-viable municipalities could be phased out.

Municipal consultant spending is about R1.5 billion, compared with roughly R500 million 10 to 15 years ago. The breakdown by municipality and the full effect on audit results have not been detailed.

The players

Mkhize

Mkhize, who spoke to the committee on municipal consultant use, said the arrangements intended as temporary have become permanent.

Portfolio Committee on Cooperative Governance and Traditional Affairs

The Parliamentary committee responsible for oversight of local government and traditional affairs, which criticised the spending.

The details

Very few municipalities employ properly qualified engineers, architects, development planners, policy developers, financial managers or municipal managers, which the committee links to continued reliance on outside consultants. Mkhize said consultants used previously did not result in the transfer of skills to municipal officials.

Consultant costs were about R500 million 10 to 15 years ago.
Costs have tripled over the past few years.
Municipal councils have waged wars against black professionals employed by municipalities since 2000.

Political Context

The criticism arrives as the government revamps the local government system and reviews its funding, a process that could lead to some non-viable municipalities being phased out. Committee members argue that consultant dependence has not built the in-house skills municipalities need.

Residents served by municipalities with weak in-house capacity may see continued dependence on consultants rather than improved service delivery. Municipalities deemed non-viable could face being phased out as the system is restructured.

The takeaway

Spending on consultants has grown sharply without building lasting municipal skills, so future reform may hinge on whether councils can develop qualified staff of their own.