Parliament’s Portfolio Committee on Co-operative Governance and Traditional Affairs has raised the alarm over more than R7 billion in unauthorized, irregular, fruitless and wasteful expenditure in Free State municipalities, warning that continued financial mismanagement continues to cripple basic service delivery.
The committee said the staggering figure, which came to light during a joint parliamentary oversight visit in August last year, reflects “deep-seated governance failures” that have left many communities without reliable water, sanitation and electricity services.
Despite some progress since the first intervention, MPs say conditions on the ground remain dire.
“The committee notes that progress has been made and recognizes these efforts,” said committee chairman Dr Zweli Mkhize.
“However, we remain concerned about continued poor outcomes and persistent dysfunction within municipalities.”
The Free State was the first stop in a national monitoring initiative that targeted municipalities with poor monitoring results.
At a follow-up meeting on April 1, 2026, the committee noted that many of the problems identified months earlier, including mounting debt, failing infrastructure and weak accountability, remain unresolved.
Municipalities across the province continue to struggle with collapsing service delivery systems, with some still relying on temporary measures such as water tankers. Persistent electricity outages and deteriorating infrastructure were also identified as major concerns.
In Mangaung, MPs criticized delays in holding public officials accountable for financial misconduct, noting that consequences were limited for those involved in misconduct.
Although municipal leadership confirmed that investigations are underway, the committee expressed frustration at the slow pace of progress.
Elsewhere, long-standing financial and operational challenges persist. Municipalities such as Letsemeng, Kopanong and Moqhaka continue to face mounting Eskom debts, unfunded budgets and failed infrastructure projects.
In Letsemeng, the collapse of the Koffiefontein water treatment plant has exacerbated water shortages in cities such as Petrusburg.
The committee also highlighted the deteriorating audit results, with some municipalities still unable to resolve issues raised in previous financial years. The continued reliance on consultants to prepare financial statements was described as a sign of weak internal capacity.
Financial sustainability emerged as another key concern. In the Lejweleputswa district municipality, MPs were told that R141 million of a R156 million budget is being spent on salaries, leaving only R7 million for services.
The committee also questioned an alleged overpayment of R50 million to senior managers and demanded clarity on how much has been recovered.
“We welcome the interventions,” Mkhize said, referring to the provincial support efforts.
“However, there are also points that the committee is not satisfied with.”
He warned that continued audit opinions with disclaimers and late financial submissions indicate that municipalities are not acting quickly enough to address fundamental deficiencies in governance.
“These are issues at the heart of the concerns raised during our joint oversight engagements, and we urge you to intensify your efforts to address them,” he said.
The committee has directed all affected municipalities to submit detailed reports within 10 days, outlining financial recovery plans, infrastructure interventions and steps to improve accountability.
“Municipalities must prioritize their service functions, such as water supply,” Mkhize said.
“Communities cannot continue to bear the consequences of weak governance, poor planning and a lack of accountability. We need clear timelines, decisive action and tangible improvements on the ground.”
IOL news
Wendy Dondolo
iol.co.za