The move to cut ties with the ailing Kopanong and Mohokare is due to escalating unpaid debt. Addressing members of the Free State Legislature, Centlec CEO Malefane Sekoboto confirmed the utility has packed its bags and ceased operations in the two municipalities after repeated failed attempts to recover mounting debts. 

The Trompsburg-based Kopanong municipality owes Centlec R61 million, while Mohokare municipality’s debt is even higher at R89 million.

“The money owed to us, that’s what necessitated the termination of these two municipalities, primarily because the debt was accruing annually, so that was the primary reason. More than anything,” said Sekoboto.

A formal handover of assets between Centlec and the affected municipalities has since been concluded. He said all relevant infrastructure and equipment previously under Centlec’s management are now formally registered under the municipalities’ own asset registers.

“All assets are of municipalities and are within their assets register.” 

The Kopanong municipality has been under financial strain for years. In 2023, it was placed under new governmental oversight due to persistent fiscal challenges. The municipality has battled low revenue collection, bloated wage bills, and severe service delivery failures. 

In addition to its Centlec debt, it also owes significant sums to other service providers, including Bloem Water.

Deputy president Paul Mashatile, while addressing the National Assembly, expressed concern over the situation in Kopanong. He said the 2021 State of Local Government report had flagged the municipality as a dysfunctional service delivery hotspot.

Meanwhile, the situation in Mohokare is equally dire. Comprising the towns of Zastron, Rouxville, and Smithfield, the municipality has frequently made headlines over its failure to pay municipal workers’ salaries. These failures have triggered multiple protests from frustrated residents and employees alike.

Earlier this year, the ANC Free State leadership removed their deployee, Zingisa Mgawuli, as mayor of Mohokahare, citing ongoing dysfunction in the municipality. 

Aside from salary backlogs, the municipality has also failed to meet obligations to critical third-party service providers, including medical aid schemes, pension funds, and funeral policies.

The community has also faced persistent water shortages, leaving residents without consistent access to clean water, a situation that has further deepened public dissatisfaction and unrest.

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OFM News/Kekeletso Mosebetsi dg