Justice and Correctional Services Minister Ronald Lamola has announced only nine municipal officials have been convicted of crimes related to financial misconduct since 2006.
The convictions were also limited to four of South Africa's 278 municipalities - Cacdu and Senqu in the Eastern Cape, Hoogland in the Northern Cape, and Oudtshoorn in the Western Cape.
Under Section 173 of the Municipal Finance Management Act, senior municipal officials and councillors can be criminally prosecuted for financial misconduct that falls short of outright fraud and corruption.
Lamola said in the Senqu Local Municipality, five of the seven accused were convicted for contravening section 173.
"Evidence of these cases is not in short supply - just consider the findings of the Auditor-General and the routine expenditure and tender reports municipalities have to send to councillors and National Treasury."
