Decisive action by Finance Minister against municipalities long overdue – AfriForum
AfriForum welcomes the decision of the Minister of Finance, Enoch Godongwana, to withhold the July 2025 payment of equitable share and conditional grants to 39 municipalities. This is due to these municipalities’ failure to meet their financial obligations.
In terms of Section 216(2) of the Constitution, the National Treasury has the power to stop transfers to organs of state if they continue to contravene financial management measures. Treasury will conditionally release portions of the funds for the payment of current accounts and arrears to water boards and other creditors. If these conditions are met, a further portion will be paid out. This is a practical step to ensure that public funds are not wasted by officials.
According to Deidré Steffens, AfriForum’s advisor for Local Government Affairs, municipalities have been allowed to squander public funds without consequences for too long. “Year after year, the Auditor-General’s reports paint a bleak picture of municipal finances characterised by unfunded budgets, corrupt tender processes, irregular expenditure and unpaid statutory obligations. Despite repeated warnings, there have been no real consequences. A lack of action has fostered a culture of mismanagement and corruption.”
The Govan Mbeki Local Municipality is one of the biggest offenders in this case. According to Godongwana’s notice, this municipality owes more than R800 million to Rand Water alone.
“This enormous debt threatens local water supplies and especially the financial sustainability of water providers like Rand Water,” adds Steffens.
AfriForum has also been involved in a court battle against Rand Water for years to protect the rights of residents that are threatened due to shortcomings in municipalities. In addition to the millions that the Govan Mbeki Local Municipality owes Rand Water, three other municipalities whose debts also exceed the hundred million mark are also mentioned – the Emfuleni Local Municipality, the Ngwathe Local Municipality and the Victor Khanye Local Municipality. The communities that fall under these municipalities have each been the victims of draconian measures in the past as a result of their municipalities, which included pressure reduction and water shedding. This in an attempt to force municipalities to settle their outstanding debts, these attempts were unsuccessful.
According to Hennie Bekker, AfriForum’s district coordinator for the Highveld, council members and even the mayor of the Govan Mbeki Municipality in their personal capacity collectively have more than R800 000 in arrears in municipal debt.
“It is unacceptable that those appointed to govern and collect revenue are among the biggest non-payers. Meanwhile, municipal officials regularly complain about illegal electricity connections that increase their Eskom bill because they cannot measure and charge for power consumption, but they look the other way to protect their own councillors who owe millions,” adds Bekker.
Parts of Bethal had no water for three months in 2024 due to pressure reductions implemented by Rand Water due to arrears in bills. “During this time, AfriForum, in collaboration with farmers from the community, provided 2 million litres of water to the community free of charge,” adds Bekker.
“AfriForum will continue to closely monitor the implementation of the National Treasury’s plan and will hold municipalities accountable to meet these conditions. Communities deserve basic services and honest government, not a kleptocracy that consumes public money while residents are left with dry taps, sewage pollution and dark streets,” Steffens concludes.
