Saki Mokwena said the provincial government could no longer defend municipalities that had failed to comply with intervention measures, fiscal recovery plans, and commitments made to improve financial management and governance. He appeared before the Free State Legislature on Tuesday (28/7).

Treasury decided to withhold portions of equitable share allocations from 16 Free State municipalities and 69 municipalities nationally from this month. It’s intended to enforce financial discipline among municipalities that have failed to meet prescribed conditions.

Municipalities such as Metsimaholo and Matjhabeng might have to be taken into court for failing to comply with provincial intervention measures, Mokwena said. Matjhabeng mayor Thanduxolo Khalipha has faced scrutiny over reports described as hollow and allegations that he undermined efforts to stabilise the municipality.

Although withholding the funds would have a painful effect on service delivery, Treasury’s intervention had become unavoidable, Mokwena said. Municipalities could no longer use the effect on services as an excuse to avoid accountability when poor accountability was itself contributing to their deterioration.

“We are dealing with a Treasury process that I welcome, while remaining sensitive to its effect on service delivery. Unfortunately, we can no longer use that impact as an excuse to avoid accountability when the lack of accountability is crippling municipalities,” Mokwena said.

He recalled a week-long oversight visit by members of Parliament, during which municipal and provincial officials were questioned about governance failures. Municipalities subsequently adopted action plans in the presence of National Treasury officials and Premier MaQueen Letsoha-Mathae.

The municipalities specifically committed to addressing unauthorised, irregular, fruitless, and wasteful expenditure, which has risen to billions of rands across the province. They were also instructed to implement consequence management, stabilise payments to third parties, and negotiate repayment plans where necessary.

Municipalities were warned about the consequences about a month before the funds were withheld and were required to provide verifiable proof that they had acted, Mokwena said. Many failed to respond, leaving the provincial government unable to oppose Treasury’s decision.

“There is no way we can stand on the other side of Treasury on these issues,” he said. Municipalities had been given opportunities to correct their conduct, stabilise third-party payments, and present repayment arrangements where they could not immediately settle outstanding amounts.

Mokwena said both elected politicians and senior administrators must be held responsible for the collapse of governance and finances in several municipalities. While Mafube and Kopanong had begun normalising relations with creditors and service providers, others had failed to act because of negligence.

Some municipalities appeared interested only in superficial compliance rather than meaningful corrective action, he said. Treasury’s intervention therefore had to force them into a position where they would explain to residents how the crisis developed and what steps they were taking.

“It had to sting. It had to put them in a corner where they must answer to residents and the public about how they reached this point and what measures they are taking to correct the situation quickly,” Mokwena said.

The provincial government is considering consequence management against administrative and political leaders who presided over the deterioration of municipalities. Mokwena said the province would not allow itself to be pressured into accepting responsibility for failures caused by municipal leadership.

Arguments that workers were not being paid and service delivery was collapsing could not shield elected leaders from accountability, he said. Municipal leaders must accept responsibility for the condition of the institutions they govern and the effect of their decisions on residents.

OFM News/Kekeletso Mosebetsi sm

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