MUNICIPAL NEWS - National Treasury’s decision to withhold funding from 69 municipalities punishes vulnerable communities and workers while no steps are taken to address mismanagement and corruption that has crippled local government.
So says Misa, the Motor Industry Staff Association, which represents more than 79 000 members in the retail motor industry.
Misa says it is time that those responsible are held accountable.
One of the affected municipalities is Inxuba Yethemba whose July 2026 equitable share allocation is being withheld.
Formerly Cradock, the municipality currently owes Eskom R930 million, while the latest audited financial statements reveal R53,8 m in irregular expenditure and R68,8 m in fruitless and wasteful expenditure.
Cllr Bettie Lawens, the DA Inxuba Yethemba mayoral candidate, says these figures represent money taken from basic service delivery.
She says National Treasury has correctly moved to enforce financial discipline, but insists that withholding funds alone is not enough.
The party demands that the municipality conduct a forensic investigation; pursue criminal charges against officials and politicians implicated in the looting; establish a credible Financial Recovery Plan; disclose to Council all debt repayment schedules and monthly expenditure reports; and the suspension of officials pending the outcome of disciplinary processes.
Cllr Bettie Lawens, the DA Inxuba Yethemba mayoral candidate
"While the DA is concerned about the potential short-term impact on service delivery, we place the blame on the ANC leadership that has driven this municipality into financial ruin through cadre deployment, corruption, and incompetence," Lawens says.
Martlé Keyter, MISA’s CEO of Operations says justice must be seen to be done.
"The core frustration in South Africa stems from a collision between the unfulfilled political promises and systemic socio-economic collapse. At its heart lies a cycle of staggering unemployment, endemic public sector corruption and failing basic services like electricity, water and infrastructure.
"Protecting workers means protecting the communities they live in and that requires urgent reform at municipal level,” says Keyter. “When funding is withheld due to mismanagement, it is ordinary people who suffer. Workers face unsafe living conditions and unreliable transport while residents are left vulnerable, yet corrupt officials escape accountability.”
She says reports from the Auditor General and parliamentary oversight committees have repeatedly highlighted material irregularities, wasteful expenditure and weak internal controls in municipalities, but consequence management remains absent.
“Treasury’s decision is a wake up call. Officials who have betrayed the public trust through corruption and incompetence must be investigated and prosecuted,” says Keyter.
Below is a breakdown of some of the debts collectively owed by SA municipalities:
- Eskom debt: R110 billion.
- Water board debt: At least R15.7 billion.
- Irregular expenditure: R145 billion.
- Unauthorised expenditure: at least R118 billion, much of it unfunded budgets.
2024/25 Dr Beyers Naude Annual and Oversight Report blocked
Dr Beyers Naude Municipality's 2024/25 Annual and Oversight Report was not adopted at a council meeting on 30 June after the DA caucus objected to the process.
The DA argued that the municipality failed to comply with the Municipal Finance Management Act (MFMA) by not holding physical public hearings.
Instead, it had planned to rely solely on online platforms, which the party said would exclude many residents without reliable access to smartphones, social media or the internet.
The Annual and Oversight Report details the municipality’s spending of public funds, its performance during the financial year, and progress against its targets.
It is a key accountability document that council is required to consider each year.
Dr Eddie Rankwana, municipal manager of Dr Beyers Naude Local Municipality
As a result of the objection, the municipality has agreed to hold public hearings in all towns across the municipal area before the report can be tabled for adoption.
The report was due to be adopted about two months ago.
The delay stems from the Municipal Public Accounts Committee (MPAC) not convening the necessary meetings and hearings earlier, despite repeated requests from the DA’s MPAC representative, Cllr Danie Bezuidenhout.
The late adoption is now expected to trigger a negative audit finding for the municipality.
The DA has indicated it will submit a motion at the next council meeting calling for the removal of the ANC MPAC Chairperson due to the committee’s oversight failures.
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