The Portfolio Committee on Cooperative Governance and Traditional Affairs has ordered all municipalities in the Free State to submit detailed written reports on key issues, including financial recovery plans, audit action plans and plans to address infrastructure challenges, within 10 days.
The Chairperson of the committee, Dr Mkhize has raised serious concerns about the continued deterioration of basic services, particularly water and sanitation, in several municipalities in the province.
“Municipalities must prioritise their service delivery functions, such as water provision. Communities cannot continue to bear the consequences of weak governance, poor planning and a lack of accountability. We require clear timelines, decisive action and tangible improvements on the ground,” Dr Mkhize said.
In August 2025, the Committee revealed deep-seated governance failures, including billions owed to creditors, irregular tenders and over R7 billion in unauthorised, irregular, fruitless and wasteful expenditure in some municipalities, through a joint parliamentary oversight.
The committee had a meeting on Wednesday, 1 April 2026, to follow up on commitments made during the oversight visit by the Provincial Treasury, the Free State Department of Cooperative Governance and Traditional Affairs (COGTA) and the leadership of several municipalities in the province. Municipalities across the province continue to struggle with a collapsed service delivery. Some of the struggling municipalities like Mangaung Metropolitan Municipality have failed implement consequences for those implicated in wrongdoing. The municipality told the committee that they are investigations taking place.
“In the engagement with the Mangaung Metropolitan Municipality, committee members were concerned about the limited evidence of consequences for those implicated in wrongdoing or who were found in breach of legal prescripts. In particular, they noted delays in finalising investigations into unauthorised, irregular, fruitless and wasteful expenditure.
“The committee noted that in municipalities such as Letsemeng, Kopanong and Moqhaka, recurring challenges related to failed infrastructure projects, unfunded budgets and Eskom debt persist. Committee members questioned the leadership of Letsemeng Local Municipality about the collapse of the Koffiefontein Water Treatment Works project and persistent water shortages in several towns, such as Petrusburg. Concern was also raised that the municipality does not have a formal payment arrangement with Eskom, despite ballooning debt.”
Meanwhile, municipalities like Masilonyana and Tswelopele Local Municipalities continue to face severe financial and audit challenges, according to the latest Auditor-General South Africa (AGSA) reports (MFMA 2023-24, published in 2025/2026.
As of the 2022-23 reporting period, Masilonyana was identified as having one of the highest amounts of irregular expenditure in the Free State, totaling R867.9 million, while Tswelopele, as of 2024, shown poor financial health, often experiencing, on average, over 500 days to pay creditors (where the standard is 30 days) and a high likelihood that 65% of its debt is irrecoverable. The committee are also concerned that audit outcomes have not improved, with municipalities the mentioned municipalities still receiving disclaimers on their audit opinions.
“Another significant concern raised was the financial sustainability of several municipalities. Committee members were particularly concerned that Lejweleputswa District Municipality continues to spend the bulk of its budget on salaries, leaving very little for service delivery. The committee heard that the municipality spends approximately R141 millions of its total budget of R156 million on salaries, with only about R7 million left for service delivery.
“Members also questioned the municipality regarding a reported overpayment of approximately R50 million to senior managers and asked how much of that amount has been recovered to date. The committee directed the municipality to submit a breakdown of its budget, programmes and human resource structure within 10 days.”
On the positive side, Dr Mkhize acknowledged that there has been progress in some the municipalities.
“However, we remain concerned about the persistence of negative outcomes and the continuing dysfunctionality within municipalities.”
The committee also noted the additional support provided by the provincial government.
Dr Mkhize said that the involvement and interventions from the provincial departments are beginning to recognise that accountability binds both the municipal and provincial spheres, especially when there is wrongdoing and lapses in service delivery to local communities.
“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,” said Dr Mkhize.
