Ramaphosa coming after these municipalities in South Africa

JOHANNESBURG – President Cyril Ramaphosa has signalled a tougher stance against struggling municipalities, warning that local governments plagued by financial mismanagement, poor governance and failing service delivery will face increased intervention from the national government.

Ramaphosa Warns Local Government Crisis

The move forms part of government’s broader strategy to stabilise municipalities that continue to struggle with mounting debt, infrastructure failures and weak financial controls. Municipalities failing to meet legal and financial obligations could face constitutional interventions, stricter oversight and support measures. https://businesstech.co.za/news/government/867550/ramaphosa-coming-after-these-municipalities-in-south-africa/

Government identifies struggling municipalities

According to government, several municipalities continue to face severe financial and operational challenges, including:

• Emfuleni Local Municipality (Gauteng)
• Lekwa Local Municipality (Mpumalanga)
• Mafube Local Municipality (Free State)
• Ditsobotla Local Municipality (North West)
• uMkhanyakude District Municipality (KwaZulu-Natal)
• Mangaung Metropolitan Municipality (Free State)
• eDumbe Local Municipality (KwaZulu-Natal)
• Msunduzi Local Municipality (KwaZulu-Natal)

Many of these municipalities have experienced repeated governance failures, deteriorating infrastructure, unreliable water and electricity services, and significant financial distress.

Why government is intervening

Ramaphosa said municipalities remain at the centre of service delivery, making it essential that residents receive reliable access to:

• Clean drinking water.
• Electricity.
• Refuse collection.
• Sanitation.
• Road maintenance.
• Local economic development.

However, many municipalities continue to battle:

• Poor financial management.
• High levels of unauthorised and irregular expenditure.
• Corruption.
• Skills shortages.
• Growing debt owed to Eskom and water boards.
• Ageing infrastructure.

Government says these challenges directly affect the quality of life of millions of South Africans.

Stronger accountability measures

The Presidency says municipalities that repeatedly fail to meet governance standards may face:

• Section 139 constitutional interventions.
• Financial recovery plans.
• National Treasury oversight.
• Administrative support teams.
• Governance reforms.
• Improved consequence management for officials responsible for misconduct.

Ramaphosa has repeatedly stressed that municipalities receiving financial assistance must demonstrate measurable improvements in governance and service delivery.

Treasury tightening financial oversight

National Treasury has already begun taking tougher action against municipalities that fail to comply with financial legislation.

Earlier this year, billions of rand in equitable share allocations were temporarily withheld from dozens of municipalities that failed to meet prescribed financial management requirements.

While many municipalities later complied and had their funding restored, Treasury warned that future non-compliance could result in additional financial interventions.

Restoring public confidence

Government says improving local government remains one of its highest priorities as communities continue to raise concerns over:

• Water shortages.
• Frequent electricity outages.
• Potholes.
• Sewer spills.
• Waste collection failures.
• Housing backlogs.

Ramaphosa has called on municipal leaders to strengthen accountability, improve financial controls and ensure that public money is spent on delivering services rather than being lost through corruption and wasteful expenditure.

What happens next?

The Presidency is expected to continue working with the Department of Cooperative Governance, National Treasury and provincial governments to monitor municipalities identified as being at risk.

Officials say intervention measures will differ depending on each municipality’s circumstances, but the overall objective is to restore financial stability, improve governance and ensure better service delivery for residents.

Government maintains that stronger oversight, combined with accountability and institutional reform, is essential to rebuilding public confidence in South Africa’s local government system.