Hlabisa urged to punish delinquent mayors and municipal officials
'It is due to this allowance of municipal top brass existing unchecked for the poor decisions that they make, that have resulted in dysfunctional municipalities and dilapidated services,' the DA said.
In the National Council of Provinces, the DA's Dr Igor Stefan Scheurkogel led the charge, saying the collapse of local government stemmed from a crisis in political leadership.
'Of 116 municipalities, 68 have submitted unfounded budgets for three consecutive years. The auditor-general warned parliament that this fiscal recklessness has become systematic.
'Unfounded budgets are illegal under the Municipal Systems Act, which requires all municipal budgets to be based on a realistic anticipated revenue. These illegal budgets continue with zero accountability. The collapse of local government stems from political leadership. It simply doesn't care.'
He told Cogta minister Velenkosini Hlabisa that he now has a chance to turn things around.
The DA suggested the problems can be solved by going back to the basics. The party argued that real-time monitoring of revenue collection, early warning systems for deficits and cash flow issues, professionalisation of senior financial management roles and direct political accountability for overspending and irregularities were key to turning municipalities around.
'This is not a funding crisis. The crisis is of political will. The solution does not lie in a new funding model, it lies in the government crisis. Municipalities cannot continue with these illegal budgets, warning and evading consequences. What is missing is leadership, more for financial management and not policy smokescreens.'
Scheurkogel told the NCOP that it was time municipal officials faced the music for their glaring failures.
'South Africans deserve budgets that deliver real services, roads that can be driven on, taps that deliver clean water, electricity that stays on, infrastructure that works and not politically convenient fiction.
'Yet, CFOs, HODs, have not been dismissed for unauthorised expenditure, no mayor has been held accountable, no measurable improvement has been seen. Instead, we see a government that knowingly budgets for failure and abandons communities to suffer the consequences.'
He called the review of the white paper on local government a step in the right direction, saying, 'we must now commit to making local government work, because it is the sphere of government that touches the lives of South Africans every single day'.
Hlabisa highlighted the comprehensive review of the 1998 White Paper on local government as a key focus area of his ministry, saying that it marks a crucial step towards a focused and fit for purpose local governance structures and that will result in efficient service delivery.
'This review is a testament to our collective commitment to addressing the challenges facing local governance and shaping a future that aligns with the aspirations of all South Africans.
'The review emphasises the need for local governments to adapt to a changing world characterised by urban growth, climate challenges, youth unemployment, and digital transformation, while embracing collaborations with traditional and Khoi-San leadership institutions.
Hlabisa announced that he expected major collaboration across society as the review will function to influence governance, community engagement, and socioeconomic development.
'It reflects the government's commitment to improving local governance and service delivery, which are vital for effective democracy and citizen satisfaction. We prioritise inclusive engagement by ensuring all voices, especially those historically silenced, are heard. We aim to provide marginalised groups, like informal traders, women, youth, traditional and Khoi-San leaders, and rural communities, with the opportunity to participate.'
He said the review aims to create a modern local governance structure that fosters capable, ethical and innovative municipalities, ultimately improving lives and strengthening democracy.
The department has announced it has buckled to requests for more engagement, which has resulted in an extension of the deadline to July 2025.
'Our goal is to develop a responsive local government system that meets the needs of all South Africans and delivers quality services. We have made progress in implementing targeted interventions in distressed municipalities. These interventions include infrastructure maintenance and development support, enabling municipalities to address basic service delivery backlogs in water, electricity, roads and sanitation.
'We are also advancing critical policy and legislative reforms that lay the foundation for long-term stability and improved governance. Our interventions are guided by careful assessments of municipal needs, and we are committed to ensuring that our support is effective and sustainable.'
According to the minister, his department's budget strategy introduces a package of targeted and differentiated interventions, guided by careful assessments of municipal needs.
He said the department had identified 30 priority municipalities requiring support and intervention.
Hlabisa said the department's focus areas include the Municipal Infrastructure Grant (MIG) which will accelerate critical infrastructure projects, ensuring value for money.
He added the ministry allocated R493.8m to support this initiative in priority municipalities.
'Second, integrated urban development for growth nodes will enhance urban planning and infrastructure investments. To support these initiatives, we have reallocated R244.7m from the MIG to the Integrated Urban Development Grant (IUDG).'
The third priority is the strengthening of municipal systems and the District Development Model (DDM) which is expected to enhance intergovernmental planning and budgeting. Its figure will rise from R151.1m in 2025/26 to R165.3m in 2027/28, supporting municipalities in improving their systems.
'We're finalising a municipal debt relief framework with the National Treasury to help municipalities manage debt and enhance financial sustainability,' pledged the minister.
Gauteng Cogta MEC Jacob Mamabolo said Hlabisa has made his job easy, showing full support for the budget vote.
He said it will be very strange if any party or member were to deviate from a 'very profound address made by the minister'.
'This is a very strategic and correct line taken, that we as Gauteng embrace and endorse. We have launched a province wide turnaround strategy in October 2024 and we are pleased to report remarkable and significant progress in the municipalities.'
Hlabisa announced that his department's budget amounts to R410.9bn — with 96% majority earmarked for intergovernmental transfers and entities.
He believes this significant investment will enable his department to implement criticalinitiatives that deliver tangible and measurable improvements in the lives of citizens.
The department has allocated traditional affairs R195,530m, with a portion earmarked for transfer and subsidies.
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