Parliament, Wednesday, 15 April 2026 – The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements and Water and Sanitation) has cautioned councillors that they have a duty to communities to ensure that Masilonyana Local Municipality is effective and delivers quality services to its residents. The committee visited the municipality and engaged with stakeholders at Theunissen Town Hall yesterday to solicit views on the Free State Provincial Executive’s invocation of Section 139(1)(b) of the Constitution.
The committee emphasised that it is unacceptable that councillors are reportedly failing to advance good governance by not supporting motions to investigate irregular payments, turning a blind eye to questionable appointments and neglecting their statutory responsibilities, including ensuring the effectiveness of key oversight structures such as the Municipal Public Accounts Committee (MPAC).
“An important pillar of good governance in a municipality is a functional council that, through its Section 79 committees as prescribed by the Municipal Structures Act, enforces oversight and accountability. It is therefore both unfortunate and unacceptable that these committees are ineffective in Masilonyana and that the council has not supported motions to interrogate serious allegations of irregularities,” said Mr Mxolisi Kaunda, the committee Chairperson.
The committee further raised concern over the municipality’s low revenue collection rate, currently standing at approximately 20% of municipal rates and taxes. While acknowledging the broader structural challenges affecting revenue collection, the committee stressed that such a low collection rate is unsustainable and undermines the municipality’s ability to maintain adequate cash flow to deliver services. It is equally concerning that government departments contribute to this challenge by failing to pay for services rendered.
As a result of inadequate cash flow, the municipality has been unable to meet its financial obligations, including payments to third parties, such as SARS and contributions towards employee pension funds. This has led to the attachment of municipal bank accounts, further disrupting service delivery to residents.
The committee also expressed concern over the municipality’s high wage bill, which stands at R15 million per month, despite poor service delivery outcomes. It was noted with concern that funds from the equitable share, intended for service delivery, are being diverted to cover salary expenses. “It is highly unacceptable that taxpayers’ resources earmarked for service delivery are redirected to salaries. Even more concerning is when those being compensated fail to deliver quality services to the people,” Mr Kaunda emphasised.
Further concern was raised regarding the ongoing dispute between the Provincial Department of COGTA and the municipal council over the appointment of the chief financial officer, who was allegedly dismissed from previous employment. The committee noted that the resources being spent on litigation could be better utilised to improve service delivery rather than funding internal disputes.
The committee was also disturbed by the municipality’s continued receipt of disclaimer audit opinions over the past 10 years, despite its reliance on consultants to prepare financial statements. While acknowledging a reduction in matters of emphasis from over 100 to 55, the committee emphasised that continued dependence on consultants alongside persistent disclaimer outcomes remains deeply concerning.
Following its engagement with stakeholders, the committee will deliberate on the inputs received and compile a report to the National Council of Provinces (NCOP) on whether to approve or disapprove the intervention.
“At the heart of our decision is the need to ensure that the people of Masilonyana receive quality services. Residents deserve reliable access to water and sanitation, regular refuse collection, well-maintained roads and other essential services. Failure to deliver these services constitutes a breach of the constitutional promise of a better life for all,” Mr Kaunda concluded.
The committee will today visit Nketoana Local Municipality to similarly engage stakeholders on the invocation of Section 139(1)(b) of the Constitution.
Download the full programme here: https://tinyurl.com/bdfuz2ep
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND PUBLIC ADMINISTRATION, MR MXOLISI KAUNDA.
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