Key Takeaways
- Municipalities in South Africa often lack accurate information about their assets, including ownership and value.
- Incomplete or inaccurate asset registers can hinder disaster response and budget forecasting.
- The South African Local Government Association has highlighted the need for accurate asset registers to ensure effective governance and public safety.
- The recent Johannesburg building fire and the killing of DJ Warras, an activist against hijacked buildings, have underscored the deeper crisis facing municipalities.
- National Treasury has encouraged municipalities to use a portion of their allocations to establish and validate asset registers, but uptake has been poor.
Introduction to the Crisis
A Johannesburg building fire and the killing of DJ Warras, an activist against hijacked buildings, have brought attention to a deeper crisis facing municipalities in South Africa. The crisis revolves around the lack of knowledge about municipal assets, including ownership, control, and value. This issue was raised during a meeting of Parliament’s Standing Committee on Appropriations, which was considering reports on the Adjustments Appropriation Bill and Special Appropriation Bill. The South African Local Government Association submitted a report to the committee, highlighting the problems with municipal asset registers, which are often incomplete or inaccurate.
Inaccurate Asset Registers
The association told the committee that municipalities do not always know how buildings are classified or what they are used for, leading to uncertainty about asset values and weakened budget forecasting when disasters occur. This was illustrated by the example of a Johannesburg building fire, where the municipality was left facing a severely damaged structure without immediate clarity on ownership or leaseholders. The most widely reported deadly fire in recent Johannesburg history was the Usindiso building fire in August 2023, where at least 76 people died in a hijacked, overcrowded building in the CBD. The discussion highlighted the need for accurate asset registers to ensure effective governance and public safety.
The Case of DJ Warras
The death of Warrick Stock, widely known as DJ Warras, was referenced during committee deliberations as highlighting the risks associated with contested, poorly managed, and unlawfully occupied properties. Warras was shot dead in the city’s central business district on 16 December 2025, and police are investigating the targeted attack linked to his work addressing hijacked and unlawfully occupied buildings. Warras was a respected figure in South Africa’s media and creative industries, and his death has underscored the need for action to address the crisis facing municipalities. The committee discussed the issue of asset register accuracy in the context of governance failures linked to buildings in Johannesburg, following Warras’ death.
Consequences of Inaccurate Asset Registers
National Treasury director Letsepa Pakkies told the committee that asset register weaknesses are also exposed during insurance claims, leading to delayed or disputed payouts. Pakkies said that municipalities are permitted to use up to 5% of allocations from the Municipal Infrastructure Grant to establish and validate asset registers, enabling them to identify and evaluate assets properly, but that uptake of this provision has been poor. The consequences of inaccurate asset registers are far-reaching, and the committee agreed that persistent shortcomings in municipal asset registers, audit reliability, and disaster preparedness continue to undermine effective disaster response, infrastructure accountability, and public safety in South Africa’s cities.
Need for Proactive Disaster Mitigation Strategies
Committee chairperson Mmusi Maimane said that the issue of asset register accuracy underpinned the increase in allocations to disaster relief and contingency reserves reflected in the medium-term budget policy statement. Maimane emphasized that accurate asset values are essential for municipalities to account properly for infrastructure when disasters occur. Member Kingsley Wakelin supported the point and raised the need for more effective follow-through on audit assessments, drawing on his experience in Tshwane and Johannesburg. Wakelin further proposed that all spheres of government develop proactive disaster mitigation strategies, noting that disaster-related budget adjustments are often made after the fact rather than being aligned with preventative planning.
Conclusion and Recommendations
The committee agreed that accurate asset registers are crucial for effective disaster response, infrastructure accountability, and public safety in South Africa’s cities. The recent Johannesburg building fire and the killing of DJ Warras have highlighted the need for action to address the crisis facing municipalities. National Treasury has encouraged municipalities to use a portion of their allocations to establish and validate asset registers, but uptake has been poor. The committee recommended that municipalities prioritize the development of accurate asset registers and proactive disaster mitigation strategies to ensure effective governance and public safety. By addressing the crisis facing municipalities, South Africa can work towards creating safer, more resilient cities for all citizens.