During a recent oversight visit to the Theunissen-based local authority, the select committee on cooperative governance and public administration (traditional affairs, human settlements and water and sanitation) issued a stern warning to councillors. They were reminded of their responsibility to ensure effective governance and quality service delivery to residents.

Masilonyana is among several municipalities in the Free State placed under intervention in terms of Section 139(1)(b) of the Constitution, following serious concerns including governance failures, mounting debt, poor audit outcomes and financial instability.

Councillors in the cash-strapped municipality have reportedly failed to support efforts to strengthen oversight, including motions to investigate irregular payments. Allegations have also emerged that questionable appointments have gone unchallenged, while key oversight structures such as the municipal public accounts committee remain ineffective.

'Functional council an important pillar of good governance'

“An important pillar of good governance in a municipality is a functional council that, through its Section 79 committees as prescribed by the Municipal Structures Act, enforces oversight and accountability.

“It’s therefore both unfortunate and unacceptable that these committees are ineffective in Masilonyana and that the council has not supported motions to interrogate serious allegations of irregularities,” said committee chairperson Mxolisi Kaunda.

Masilonyana’s financial health remains dire. Its revenue collection rate stands at approximately 20% of municipal rates and taxes. While broader structural challenges were acknowledged, Kaunda stressed such a low rate is unsustainable and severely limits the municipality’s ability to function.

Unpaid government bills worsen situation

The situation is worsened by unpaid bills from government departments. “It is equally concerning that government departments contribute to this challenge by failing to pay for services rendered,” Kaunda added.

As a result of poor revenue collection and financial mismanagement, the municipality has struggled to meet its obligations. Payments to third parties, including Sars and employee pension funds, have been affected.

In some cases, municipal bank accounts have been attached, exacerbating service delivery interruptions, with residents reportedly going weeks without water or electricity.

The committee also raised the alarm over the municipality’s wage bill, which stands at R15m a month, despite declining service delivery standards. It was noted that funds intended for essential services are being redirected to cover salaries.

'Those compensated, fail to deliver quality services to people'

“It is highly unacceptable that taxpayers’ resources earmarked for service delivery are redirected to salaries. Even more concerning is when those being compensated fail to deliver quality services to the people,” said Kaunda.

Further tensions have emerged over a dispute between the provincial department of cooperative governance and traditional affairs and the municipal council regarding the appointment of a chief financial officer, who was allegedly dismissed from previous employment.

Kaunda criticised the ongoing litigation, noting that resources spent on legal battles could be better used to improve service delivery.

Concerns raised over decade of disclaimer audit opinions

Concerns were also raised about the municipality’s continued receipt of disclaimer audit opinions over the past decade, despite relying on consultants to prepare financial statements.

Following its engagement with stakeholders, the committee will deliberate on the inputs received and compile a report to the National Council of Provinces (NCOP) on whether to approve or disapprove the intervention, he said.

'The people of Masilonyana deserve quality services'

“At the heart of our decision is the need to ensure that the people of Masilonyana receive quality services,” Kaunda said. “Residents deserve reliable access to water and sanitation, regular refuse collection, well maintained roads and other essential services.

“Failure to deliver these services constitutes a breach of the constitutional promise of a better life for all.”

OFM News/Kekeletso Mosebetsi  cvdw

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