Parliament, Friday, 10 July 2026 – The Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements and Water & Sanitation) has expressed serious concern about the state of the Impendle Local Municipality following its oversight visit, after the KwaZulu-Natal provincial executive invoked Section 139(1)(b) of the Constitution.
“The municipality is in a state of despair and, without an urgent financial recovery plan anchored on good governance and inclusive economic development to ensure improved service delivery, the situation will continue to deteriorate,” said the committee Chairperson, Mr Mxolisi Kaunda.
The committee stressed that one of the immediate priorities should be the rationalisation of the municipality’s organisational structure to ensure it is appropriately aligned with its size, constitutional mandate and available resources. Members described it as both unacceptable and unsustainable that, despite the projected equitable share allocation of R50 million for the 2024/25 financial year, the municipality’s salary bill amounted to R59 million, leaving no resources available for service delivery.
“It is therefore not surprising that the municipality has failed to pay employee salaries for April, May and June. While the decision by the National Treasury to withhold portions of the municipality’s equitable share is understandable in light of weak governance, administrative failures and the non-payment of creditors, it will inevitably worsen the municipality’s financial challenges,” Mr Kaunda said.
The committee therefore underscored the urgent need for the municipality to develop and implement a credible and sustainable financial recovery plan.
At the same time, the committee highlighted the structural funding challenges facing rural municipalities such as Impendle, which have limited capacity to generate meaningful own-source revenue because of their predominantly rural character. Nevertheless, members noted that several government programmes and funding mechanisms exist to support rural development, but the municipality has failed to leverage these opportunities to stimulate local economic growth and development.
Regarding governance, the committee criticised the prolonged political instability that resulted in the municipality operating without an elected Mayor for seven months, creating an avoidable leadership vacuum. The committee reiterated that elected public representatives have a constitutional obligation to serve their communities and that the failure to elect a mayor for such an extended period amounted to a serious dereliction of duty.
The committee also expressed concern over the absence of effective consequence management, despite the municipality’s ever-increasing unauthorised, irregular and fruitless and wasteful expenditure, which now exceeds R141 million. Members emphasised that enforcing accountability through appropriate disciplinary and corrective measures is essential to reversing the municipality’s decline.
In addition, the committee called on the province-appointed administrator to work collaboratively with local businesses that have expressed a willingness to support the municipality’s economic development efforts. The committee believes that strengthening partnerships between government and the private sector will contribute to expanding the municipality’s economic base, improving revenue generation and enhancing service delivery.
Following the oversight engagement, the committee will deliberate on its findings before making recommendations to the National Council of Provinces on whether the provincial intervention in terms of Section 139(1)(b) should be supported.
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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