MAHIKENG, North West — The National Treasury has withheld July funding from 13 North West municipalities over wasteful expenditure and severe financial mismanagement, sparking concerns among municipal experts and local residents about the future of service delivery in the province.
In an attempt to hold local councils accountable, the Treasury froze funds for several municipalities, including Kgetlengrivier, Tswaing, Mamusa, and JB Marks. Additionally, Mahikeng and Ditsobotla—both falling under the Ngaka Modiri Molema District Municipality—have had their funding withheld. The Treasury cited the municipalities’ failures to address unauthorized, irregular, and wasteful expenditure, alongside a distinct lack of consequence management.
While the intervention aims to correct years of poor financial management that have translated into failing services, municipal experts point to systemic budget leaks as a primary culprit. Dr. Arthur Shopola, a municipal expert, highlighted that the outsourcing of services to consultants is a major contributing factor to the region’s wasteful expenditure.
“Our municipalities are having a double payment system, paying employees and paying consultants from their limited budgetary resources,” Dr. Shopola explained. He noted that when evaluating the qualitative outcomes of the decision to hire external consultants, the results are “very little to none.”
Despite the Treasury’s strict measures, residents in areas like Mahikeng and Lichtenburg remain deeply skeptical that the intervention will improve service delivery or drive accountability.
Speaking from Blydeville in Lichtenburg, one resident argued that municipal funding should be entirely withheld until after the upcoming local elections. The resident expressed concern that the current council lacks the incentive to fix the crisis, suggesting, “This funding they can hold it until we get the new administration… because from this one that we are in, there is nothing happening.” They warned that the current leadership might simply use the released funds as campaign material for the community.
Another resident echoed this frustration, noting a profound lack of confidence in the Treasury’s intervention. They pointed out that their municipality has already been under national administration for over eight months with zero visible improvements. “We never had services before the national intervention came in. We still don’t have the same issues that we were raising. They are still happening,” the resident stated, adding that the community is left unsure of what to do next.
Amidst the funding freeze and public outcry, the Mahikeng Local Municipality has pushed back, stating that it has submitted all the documents requested by the National Treasury to address the financial compliance issues.
