Matjhabeng Local Municipality has been placed under administration. Picture: Supplied
Cash-strapped Matjhabeng Local Municipality has been placed under administration following years of governance failures that left residents without basic services.
This was after the Free State provincial government invoked Section 139 of the Constitution against the municipality.
The provincial government said this move is aimed at addressing severe financial mismanagement and service delivery failures.
The province said the municipality breached its obligations to provide basic services and meet its financial commitments.
“Matjhabeng Local Municipality has breached Section 152 (2) of the Constitution, in failing to strive, within its financial and administrative capacity to ensure the provision of services to its community in a sustainable manner; promote social and economic development; and promote a safe and healthy environment.
“Matjhabeng Local Municipality has breached Section 153 (a) of the Constitution, in failing to structure and manage its administration, budgeting and planning processes to give priority to the basic needs of the community and to promote the social and economic development of the community,” said the provincial Co-operative Governance and Traditional Affairs spokesperson, Zimasa Mbewu.
The municipality has been in severe financial distress for years.
The municipality owes R6.8 billion to Eskom, and R7.3 billion to the Vaal Central Water Board.
This has damaged service delivery, with frequent water shortages, electricity blackouts, and infrastructure collapse.
The municipality was also marred by allegations of corruption, wasteful expenditure, and mismanagement.
In 2023, the ActionSA in the Free State approached the Office of the Public Protector to investigate more than R3.4 million mansion owned by mayor Thanduxolo Khalipha.
It has been alleged that the property was built by a municipal service provider whose daughter works in the mayor’s office.
It was also reported that Matjhabeng paid R7.2 million for a flood-protection dam that was never constructed in Ondendaalsrus between April 2017 and June 2019.
Residents previously embarked on a protest against corruption, poor services, shortage of water, and unemployment.
Mbewu said the decision was a direct consequence of an order of the High Court in Free State in an application that was brought by the DA.
The order was granted on October 23, 2024.
The party approached the High Court to grant a declaratory order stating that in terms of Section 139(5) of the Constitution, the provincial government must intervene by imposing a financial recovery plan if the municipality fails to comply with Section 139 of the Municipal Finance Management Act (MFMA).
The party said residents suffered under poor service delivery as a result of the financial mismanagement. It said corruption, wasteful expenditure, and mismanagement were the direct cause of the municipality’s inability to do the most basic things that are required of any municipality.
Mbewu said the financial recovery plan for the ANC-led municipality would include:
• Facilitate engagement between the municipality and Vaal Central Water Board to restore water supply to the communities of Matjhabeng;
• Facilitate engagement between the municipality and Eskom regarding outstanding debt to Eskom;
• Engage sector departments to assist where possible to restore services to the communities of Matjhabeng;
• Put in place effective systems to collect revenue; and
• Put in place controls for spending and compliance.
The DA’s Piet Botha said the party approached the High Court because of the financial mismanagement, adding that the municipality owes Eskom and Vaal Central Water Board over R13 billion combined.
“The DA has on many occasions asked that a proper plan be made to get the municipality out of this mess but it has been ignored. Even our efforts to establish a Revenue Enhance Committee were ignored,” he said.
Matjhabeng spokesperson Tshediso Tlali said the municipality was unable to provide further details until the council meeting scheduled for Friday, February 14, when the provincial government’s support would be further deliberated.
“However, we appreciate this support, as it will play a vital role in strengthening the municipality’s financial position, which has been significantly affected by non-payment of services,” Tlali said.
The Matjhabeng Community Foundation applauded the provincial government’s decision, adding that it would help stabilise the municipality in order to provide quality services to the people.
“The team of administrators should help residents to ensure that they get clean consumable water, deal with sewer spillages, dysfunctional street lights, bad roads, ambiguous employment processes in the municipality, and unfinished projects, said secretary Shima Mahlatsi.
manyane.manyane@inl.co.za