“There are municipalities that do not have financial officers,” he told reporters after the presidential co-ordinating committee meeting in Pretoria.
He said some municipalities were unable to produce records needed for auditing. The meeting agreed that municipalities had to keep proper records, he said.
The meeting, chaired by President Jacob Zuma, discussed issues relating to local government, including demarcation of municipalities in preparation for the 2016 local government election, and municipal budgets.
Gordhan said spending in municipalities had increased slightly.
He said municipalities were owed R94 billion by the end of June this year, made up of collectable debt of R18.8bn and uncollectable debt of R75.2bn.