In an effort to fight corruption and improve financial management and accountability, the SA Local Government Association is establishing public accounts committees in all municipalities.

The committees, said the association's CEO, Xolile George, will operate like parliament's Standing Committee on Public Accounts, which holds law-makers in parliament and other legislatures accountable for how they use public funds.

Only seven municipalities achieved clean audits in the past financial year, and 127 received an unqualified audit.

The Treasury and the auditor-general raised concerns about the financial viability of a number of municipalities, blaming corruption in supply-chain management and weak accountability systems.

George said: "T he committees must hold the municipalities' executive and administration to account for how they utilise public funds. The fact that mayors and municipal managers know that they could be called to account is a huge step ."

The project will be implemented in partnership with the Association of Public Account Committees.

"The system has worked well in provincial legislatures and parliament, and I think it will work well at the local level as well," said Nico Steytler, director of the University of Cape Town's Community Law Centre, and a local government law expert.

The association will lobby the government to review local government funding to ensure that municipalities receive funds based on needs. Currently, the Treasury funds municipalities based on their categories and population .

The ANC is expected to discuss local government funding at its policy conference in June.