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Central SA

Free State municipalities sink deeper into financial, service delivery crisis

───   KEKELETSO MOSEBETSI 10:21 Thu, 09 Apr 2026

Free State municipalities sink deeper into financial, service delivery crisis | News Article
Photo: OFM News

Deep-seated governance failures continue to plague several Free State municipalities.

Billions are owed to creditors, irregular tenders proliferate, and more than R7bn in unauthorised, irregular, fruitless, and wasteful expenditure remain unresolved.

For years, service delivery has collapsed entirely, placing immense strain on already vulnerable communities. These ongoing challenges came under scrutiny during a recent follow-up meeting of the portfolio committee on cooperative governance and traditional affairs with municipal and provincial leadership.

The meeting formed part of a broader parliamentary oversight initiative that began in August last year, with the Free State serving as the first stop. The committee, chaired by Dr Zweli Mkhize, expressed concern over the continued deterioration of basic services, particularly water and sanitation, across several municipalities.

‘For years, service delivery has collapsed entirely, placing immense strain on already vulnerable communities’

It pointed out local authorities such as Letsemeng, Kopanong and Moqhaka continue to face challenges, including failed infrastructure projects, unfunded budgets and mounting Eskom debt.

One of the most alarming cases highlighted was the financial instability of the Lejweleputswa district municipality. Committee members raised concerns that the municipality spends some R141m of its R156m budget on salaries.

Concerns were also raised over alleged overpayments to senior managers. Lejweleputswa is believed to have overpaid around R50m, but it’s unclear how much has been recovered. The committee instructed it to provide a detailed breakdown of its budget, programmes and human resource structure within ten days, said Mkhize.

Audit outcomes across the province remain a major concern. Municipalities such as Masilonyana and Tswelopele continue to receive disclaimer audit opinions, reflecting ongoing financial mismanagement and weak internal controls. Masilonyana in particular has long struggled with poor financial management and service delivery failures.

The committee also questioned the persistent reliance on consultants, despite limited improvements in governance and administration, Mkhize said.

Concerns were also raised about the lack of accountability in Mangaung. Committee members noted delays in concluding investigations into unauthorised, irregular, fruitless and wasteful expenditure, with limited consequences for those implicated in wrongdoing. Municipal leadership has assured the committee investigations are ongoing, he added.

In Letsemeng, the collapse of the Koffiefontein water treatment works project and ongoing water shortages in towns such as Petrusburg were highlighted as urgent concerns. The municipality was criticised for failing to establish a formal payment arrangement with Eskom despite escalating debt.

Mkhize emphasised the need for stronger provincial oversight. “The provincial government has to account for recurrent disclaimers in the Free State despite the undertakings made to eliminate all disclaimers, and the province has to intervene early to stop any future disclaimers.”

All municipalities have been instructed to submit detailed written reports within ten days. These reports must outline financial recovery plans, audit action strategies and concrete measures to address infrastructure challenges, he said.

OFM News/Kekeletso Mosebetsi sm

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