Cabinet has expressed grave concern at the poor quality of audit results revealed in Auditor General Terence Nombembe's latest report on municipalities.

Cooperative Governance and Traditional Affairs Minister Richard Baloyi had been instructed to ensure that municipalities employed qualified chief financial officers at all levels, in compliance with the municipal minimum competency requirements, government spokesman Jimmy Manyi said following Cabinet's regular fortnightly meeting.

"Furthermore, Cabinet expressed appreciation for the additional six municipalities in the clean audit category for the year under review and the previous serving municipalities that maintained a clean audit.

"Cabinet commends the 13 municipalities that have received clean audits and calls on them to continue to sustain their good performance," he said in a statement.

Last week, Nombembe said only five percent of municipalities had obtained clean audit reports for 2011/2012. However, six new municipalities had joined the clean audit category, taking the total to 13.

Municipalities with clean audits were in KwaZulu-Natal, Limpopo, Mpumalanga, and the Western Cape.

No municipalities in the Eastern Cape, Free State, Gauteng, Northern Cape, and North West received clean audit reports.

Nevertheless, 45%obtained unqualified audit reports but with concerns.

None of the metros received clean audits.