Parliament, Wednesday, 19 March 2025 – The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements and Water and Sanitation) is of the view that the inability of Mafube Local Municipality to collect rates and taxes will diminish its ability to achieve the intentions of the Section 139 (5) (a) and (c) intervention invoked by the provincial executive.
The committee Chairperson, Mr Mxolisi Kaunda, said: “Financial recovery plans that are not anchored on a strong revenue collection base are futile, as financial resources from services charges are the bedrock of municipal cash flow. It is on this basis that we are extremely worried that the municipality only collects up to 20% of services charges which means that 80% of services are not charged.”
Yesterday, the committee concluded the first of three visits to municipalities in the Free State to assess the effectiveness of the province’s interventions. While the committee acknowledged President Cyril Ramaphosa’s announcement of the government’s intention to review the municipal funding model, it urged the municipality to strengthen billing and revenue collection within the current funding framework.
The committee is alarmed by the debt in excess of R1.5 billion owed to the municipality by government departments and its own ratepayers. It urged both national and provincial governments to pay their debts to assist municipalities like Mafube to survive.
“It is unacceptable that government departments contribute to cash-flow challenges in these municipalities by not paying for services rendered to them,” Mr Kaunda emphasised. The committee welcomed the municipality’s intention to work on its indigent register to increase its knowledge of clients who are able to pay for services provided.
Meanwhile, the committee was shocked to discover that the municipality owes the South African Local Authorities Pension Fund and Municipal Workers Retirement Fund about R200 million. This will deny municipal workers their retirement benefits on their retirement and render them unable to access the government’s two-pot retirement scheme. The committee said this is unacceptable and called on the municipality to address it as a matter of urgency to secure workers’ retirement benefits.
In addition, while the committee noted the High Court judgment of January 2025, which found the mayor, exco representative, the municipal manager and the chief financial officer liable for R14.7 million for historical debt owed to the pension fund and the province’s and the municipality’s intention to lodge an appeal, it urged the parties to continue to engage to find workable solutions to the current impasse.
The committee also noted with appreciation that the municipality has filled critical vacancies. The committee is confident that the new staff members will drive the financial recovery plan to resuscitate the municipality and ensure its ability to deliver quality services to the people.
Regarding the visit to the Frankfort Waste Water Treatment Plant, the committee was concerned about the amount of water losses at the plant and urged the municipality to prioritise maintenance of the plant and the entire system to secure its future. Furthermore, the committee was alarmed to hear about disagreements between the municipality and service providers contracted to develop some of the infrastructure projects that aim to resolve water shortage challenges within the municipality.
After listening to all the stakeholder submissions, the committee will table a report in the National Council of Provinces on its assessment of the impact of the intervention.
Meanwhile, the committee will today, Wednesday 19 March, visit Matjhabeng Local Municipality following the Free State provincial government’s invocation of Section 139 (5) (a) and (c) on 24 November 2024, siting severe financial and service delivery failures as the primary reason for its decision. The municipality owes R6.8 billion to Eskom, and R7.3 billion to the Vaal Central Water Board. The provincial executive was of the view that the municipality is in breach of Section 152 of the Constitution as it was failing to implement the objects of a municipality. “The committee’s visit to the municipality is intended to interact with the internal and external stakeholders and solicit their opinions on the constitutional, procedural and substantive matters related to the intervention,” Mr Kaunda said.
Some of the key stakeholders the committee will interact with include political parties represented in the municipal council, organised labour, business, youth and women representatives, as well as the South African Local Government Association.
Details of the visit are as follows:
Date: Wednesday, 19 March 2025
Time: 10:00
Venue: Matjhabeng Local Municipality
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND PUBLIC ADMINISTRATION, MR MXOLISI KAUNDA.
For media enquiries or interviews with the Chairperson, please contact the committee’s Media Officer:
Name: Malatswa Molepo (Mr)
Parliamentary Communication Services
Tel: 021 403 8438
Cell: 081 512 7920
E-mail: mmolepo@parliament.gov.za
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