The parliamentary standing committee on finance has raised alarm over approximately R1.79 billion in outstanding pension fund contributions owed by 19 municipalities, with the free state's kopanong local municipality accounting for the largest share of the debt.
Kopanong owes a cumulative R378 million in unpaid pension fund contributions, followed by Masilonyana local municipality, also in the free state, which has accumulated debt of R156 million. According to the committee, municipalities in the free state and north west collectively account for 79.4% of the total outstanding amount.
Committee members expressed concern over municipalities' failure to meet their pension fund obligations, warning that the ongoing non-payment could have serious implications for municipal employees whose retirement savings depend on these contributions.
Committee chairperson Dr Joe Maswanganyi said parliament would engage the relevant government departments, affected municipalities, and organised labour to determine what measures were being taken to address the growing debt.
Dr Maswanganyi announced that he would write to the minister of finance and the minister of cooperative governance and traditional affairs to seek clarity on the interventions being implemented to resolve the issue.
He added that the committee would work with its legal services unit to issue letters to each affected municipality, outlining specific questions that must be answered within prescribed timeframes. Municipalities will be required to explain how they intend to settle the outstanding contributions and what disciplinary or consequence management measures are being taken against those responsible.
"This is an act of criminality, and someone must be held accountable," Dr Maswanganyi said, stressing that those found responsible should face the full consequences of the law.
He further proposed that all affected municipalities be summoned to a single meeting where they can account directly to parliament and outline their plans to address the outstanding pension obligations.
The committee also intends to engage trade unions representing municipal workers when parliament reconvenes next year to discuss possible solutions and interventions.
"We were elected by the public, which has full confidence in us, and we can't let them down," Dr Maswanganyi said.
Through its planned engagements, the committee aims to determine what action is being taken to recover the outstanding pension contributions, strengthen accountability mechanisms, and ensure municipalities fulfil their obligations to pension funds and employees.
Justice Molafo
12 October 2026
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