BLOEMFONTEIN — A provincial multi-party joint oversight committee has exposed serious governance and financial failures across several Free State municipalities, prompting the Democratic Alliance (DA) to call for immediate administrative intervention and stronger accountability measures.

The inquiry’s findings focused primarily on Matjhabeng and Nala local municipalities, both of which are under varying degrees of provincial oversight due to persistent failures in financial management and service delivery.

Matjhabeng: Debt, Defiance, and Deteriorating Services

Matjhabeng Local Municipality emerged as the most troubled of the two, with the committee finding that it had failed to comply with a mandatory Financial Recovery Plan. The municipality has reportedly adopted unfunded budgets, ignored legally binding directives, and provided incomplete reporting to council structures.

The financial position is severe. Total debt has risen to R18.8 billion, whilst expenditure on infrastructure maintenance stands at just 1.2% of the budget — a figure the DA described as “catastrophic”. Water and electricity losses are reported to be at critical levels, with residents bearing the consequences of prolonged service delivery failures.

The DA has called for the removal of Executive Mayor Councillor Thanduxolo Khalipa, citing a pattern of non-compliance and inadequate leadership response to the municipality’s deteriorating condition. The party is also advocating for the appointment of an independent administrator to stabilise operations.

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Nala: Insolvency and Governance Gaps Persist

Nala Local Municipality, also under provincial intervention, has shown some improvement but remains financially precarious. Its revenue collection rate sits at 40%, and creditor liabilities have grown to R1.6 billion.

The committee noted that consequence management efforts at Nala have been hampered by council disputes and legal challenges, while several critical posts remain vacant. Reliance on external service providers has added further strain to an already constrained budget.

Calls for accountability

The DA, whose members participated in the oversight committee, has urged the Free State Provincial Legislature to enforce stricter accountability measures across all underperforming municipalities.

“The people of the Free State deserve transparent, competent, and service-driven local government,” the party said in a statement following the inquiry.

The committee’s findings are expected to inform recommendations to the Provincial Executive regarding the future of both municipalities’ oversight arrangements.