George Michalakis, DA Leader in Parliament and DA Constituency Head for Matjhabeng
MATJHABENG – Matjhabeng can once again become the Free State’s city of gold, but restoring basic services, financial stability and public trust will require decisive leadership and accountability, according to George Michalakis, DA leader in Parliament and DA constituency head for Matjhabeng.
In an opinion piece, Michalakis attributes the municipality’s decline to years of ANC governance, citing mounting municipal debt, alleged corruption, financial mismanagement and the deterioration of essential services.
He argues that the municipality needs urgent financial and administrative reform, with service delivery and infrastructure maintenance placed at the centre of its priorities.
Fivaz Report exposed alleged maladministration
Michalakis points to the Fivaz Report, which was investigated by Parliament in 2013 and dealt with alleged maladministration at the then ANC-led Matjhabeng Local Municipality. The investigation covered alleged corruption dating back to 2007.
According to Michalakis, the report identified more than R2 billion in alleged misappropriation, municipal accounts fraudulently credited without payments being made, forged clearance certificates and millions of rand spent without proper documentation.
He also refers to allegations surrounding R1.5 million in security upgrades at the home of former mayor Mathabo Leeto, now an MEC, as well as an alleged R2 billion multi-tender fraud scheme involving Leeto and former municipal manager Benny Malakoane.
Further allegations included kickbacks and a fraudulent R15 million municipal contract involving a photocopying and telecommunications company.
Michalakis says the cases were not successfully prosecuted and were withdrawn amid technicalities and delays. He also criticises the use of taxpayers’ money to defend those implicated.
He alleges that the provincial government failed to make the Fivaz Report public and that Matjhabeng was never placed under administration, despite the municipality’s ongoing problems.
These allegations and historical claims form part of Michalakis’s account of the municipality’s decline.
Billions in municipal debt and financial losses
Michalakis describes Matjhabeng’s financial position as unsustainable, claiming that the municipality owes Eskom approximately R7 billion and the water board approximately R9 billion.
He further alleges that the municipality loses R208 million annually through electricity distribution losses and R418 million through water losses.
The DA leader argues that these losses represent resources that could otherwise be directed towards housing, infrastructure and basic services.
The municipality’s financial difficulties have also affected its ability to maintain operations. Michalakis says its entire vehicle fleet was attached last year over more than R200 million in unpaid debt, disrupting maintenance and refuse removal.
He also cites approximately R4 billion in unauthorised, irregular and wasteful expenditure.
Ghost employees and questionable municipal spending
Michalakis raises concerns about alleged irregularities involving municipal payrolls and the Expanded Public Works Programme (EPWP).
He claims that individuals connected to the ANC received inflated salaries through the programme, with some allegedly earning more than R30,000 a month while many residents remain unemployed.
According to him, payroll audits also uncovered alleged ghost employees and fraudulent appointments. He further alleges that the mayor has five salary numbers and that other ANC politicians have multiple salary numbers.
Michalakis also questions why municipal employees who allegedly owe the municipality substantial amounts remain employed.
He identifies two staff members who, according to his account, owe R1.28 million and R950,000 respectively. He also says the municipality paid more than R3.2 million in overtime during February 2026 alone.
These claims require verification against the relevant municipal records and audit findings.
Residents bear the cost of failing services
The DA leader argues that the municipality’s financial and administrative problems are reflected in residents’ daily lives.
He points to sewage spills affecting homes and public spaces, pothole-riddled roads, non-functioning streetlights and prolonged water interruptions.
He also accuses the municipality of disregarding court orders and South African Human Rights Commission reports, while the provincial government has failed to intervene adequately.
Michalakis says the DA had to approach the courts to compel intervention in Matjhabeng’s finances through a financial recovery plan.
He maintains that the plan has yet to be fully implemented and faces resistance from the ANC-led council.
How Matjhabeng can recover
Michalakis outlines several measures he believes are necessary to restore the municipality’s financial health and improve service delivery.
Appoint qualified leadership: A suitably qualified municipal manager and senior directors must be appointed. Existing officials should be assessed against clear performance targets and held accountable for failures.
Audit the municipal payroll: Comprehensive payroll audits should identify and eliminate ghost employees and fraudulent appointments. Action should also be taken against employees who owe the municipality money.
Improve revenue collection: A reliable billing system is needed to ensure that residents and businesses are billed accurately and that the municipality collects sustainable revenue.
Protect water and electricity funding: Revenue collected for water and electricity should be ring-fenced for the maintenance and development of the respective infrastructure. Illegal electricity connections should be addressed in cooperation with the South African Police Service (SAPS).
Prioritise service delivery: The municipal budget must be realistic and direct funding towards essential services and infrastructure, while unnecessary expenditure is reduced.
Review contracts and tenders: All contracts should be reviewed, with appropriate action taken where procurement requirements were not followed. Supplier arrangements should also be assessed to ensure that the municipality receives value for money.
Unspent grants and infrastructure backlogs
Michalakis argues that Matjhabeng cannot resolve its infrastructure challenges without support from national government.
He proposes partnerships with the Department of Water and Sanitation and National Treasury to address backlogs that the municipality cannot afford to resolve on its own.
He also insists that conditional grants must be spent on their intended purposes rather than returned unspent to the fiscus.
According to Michalakis, Matjhabeng returned R176.5 million in unspent Municipal Infrastructure Grant (MIG) funding intended to benefit poor households, as well as almost R33 million in Water Services Infrastructure Grant funding.
He says better planning, project management and accountability are essential to ensure that available funding translates into improved services for residents.
Business community must become a partner
Michalakis also calls for closer cooperation between the municipality and the local business community, which he describes as a key partner in Matjhabeng’s economic recovery.
He argues that businesses have invested billions of rand in the area and have a direct interest in ensuring that the municipality functions effectively.
Rather than treating business leaders merely as informal advisers, he says the municipality should involve them as partners in developing practical solutions to local challenges.
Such cooperation, he believes, could help restore investor confidence, support economic growth and create opportunities for employment.
‘Time to restore dignity’
Michalakis says the DA intends to pursue these measures, describing the task of rebuilding Matjhabeng as substantial but achievable.
He argues that the municipality needs ethical leadership, financial discipline, accountability and cooperation from a community committed to improving its towns and neighbourhoods.
“Matjhabeng deserves to again be the Free State’s city of gold,” he says, arguing that residents deserve reliable basic services, economic opportunities and a municipality that works for everyone.
He concludes that the community cannot afford another five years of what he describes as ANC looting and mismanagement.
For Matjhabeng’s residents, the central challenge remains turning promises of reform into tangible improvements in water supply, sanitation, roads, electricity infrastructure and the local economy.
George Michalakis is the DA leader in Parliament and DA constituency head for Matjhabeng. This article is based on his opinion piece and reflects his views and allegations
