For the first time in six years Beaufort West Municipality adopted a funded budget for the 2026/27 financial year. This is the first time the Beaufort West Municipality adopted a funded budget since before the Covid pandemic.
In municipal finance terms, a funded budget refers to a budget that is both credible and affordable, meaning the municipality’s planned expenditure is supported by realistic and reliable sources of funding.
Financial crisis triggers intervention
In 2021 Beaufort West adopted an unfunded budget and was subsequently assessed to have fallen into a financial crisis. Their collection rates dropped to a point where they could not pay their creditors (including Eskom) and could not pay staff on time.
As a result, the provincial government was compelled to act, and the provincial executive placed them under an intervention in terms of Section 139(5) of the Constitution. A Financial Recovery Plan was developed by the National Treasury, and implementation began in March 2022, overseen by the provincial government.
Debt relief programme brings relief
Since then, the Municipality has qualified for Municipal Debt Relief for their Eskom and bulk water debts, which if both completed successfully will result in the write-off of R94.2 million owed by the municipality. The municipality has already received confirmation of their successful completion of the first two phases of the Eskom debt relief.
The municipality improved its audit outcome from a qualified audit to an unqualified audit for the 2024/25 financial year, reflecting progress in improved financial governance.
Province confirms funded budget status
Now, after years of work to slowly improve their funding position the municipality has finally crossed the threshold and achieved a funded budget. Provincial Treasury has confirmed that their assessment, using a methodology prescribed by National Treasury confirms that the municipality’s budget is credible and funded.
Deidré Baartman, Western Cape Minister of Finance, said good governance is the foundation to growing Beaufort West’s economy, creating jobs and starting the journey of re-instilling business confidence in the municipality.
“I want to congratulate Mayor Duimpies and the municipal leadership for achieving this amazing feat after 6 years of unfunded budgets.
“There are still many targets in the municipality, as per the Financial Recovery Plan, that need to be reached to ensure stability; however, achieving an unqualified audit in the 2024/25, qualifying for the Eskom write-off, and now achieving a funded budget along as well as achieving 98% capital spending for the 2025/26 financial year shows that the municipality is indeed moving in the right direction towards financial stability.”
Leadership applauds financial turnaround
Anton Bredell, Western Cape Minister of Local Government, Environmental Affairs and Developmental Planning, said a well-run municipality that delivers quality services and attracts investment from the private sector that can create jobs, starts with sound financial management and discipline.
“I want to congratulate the municipal leadership for the hard and sometimes unglamourous work that has been done in recent times to get the building blocks in place for Beaufort West to prosper.”
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