MAHIKENG — The National Treasury has initiated a strict North West municipalities funding freeze, officially withholding the July equitable share transfer for several local governments due to severe financial mismanagement. The intervention targets municipalities that have failed to address unauthorized, irregular, fruitless, and wasteful expenditure, alongside a glaring lack of consequence management.
Among the 13 municipalities in the province affected by this funding suspension are the Mahikeng and Ditsobotla local municipalities, as well as the Ngaka Modiri Molema District Municipality. The financial freeze comes at a critical time, following recent national addresses by the President regarding the deteriorating state of basic service delivery across the country.
Despite the Treasury’s directive, representatives from the Mahikeng Local Municipality have expressed surprise at being included in the funding freeze. The municipality maintains that it has fully complied with the Treasury’s requirements by submitting all requested documentation. However, this administrative compliance stands in stark contrast to the reality on the ground for locals. In Extension 39, residents continue to grapple with uncollected refuse and deteriorating internal roads. One resident expressed deep frustration, noting that the poor are continually punished by poor leadership, though they remain hopeful that the Treasury’s intervention might finally force accountability.
The Ngaka Modiri Molema District Municipality, which oversees several of the affected local municipalities, indicated through a spokesperson that they are actively reviewing the matter. The spokesperson noted that the municipality’s administrator has been on sick leave, while the mayor is currently attending to a bereavement, delaying their formal response regarding compliance.
The broader financial crisis in the province was further highlighted by the situation in the City of Matlosana. That municipality has been plagued by severe financial challenges, including employee complaints over unauthorized third-party deductions from their salaries that were never paid to the rightful beneficiaries. Following a recent visit to the municipality, the Minister of Finance made it clear that national bailouts for struggling municipalities will not be entertained.
In Ditsobotla, residents say the Treasury’s decision is a long time coming. One local resident stated they were not surprised by the funding suspension, citing a complete lack of accountability and basic services. The resident pointed out that a national intervention involving an administrator was implemented nine to ten months ago, but it has yielded 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 noted, demanding strict policy systems to ensure future funding is met with accountability.
The situation in Ditsobotla’s Bladeville Extension 4 remains dire, according to a resident. He detailed a litany of broken promises regarding basic utilities, stating that a local councilor initially promised electricity within 24 hours. However, the demands kept changing, with alleged demands for substantial upfront payments from Eskom that were never met. Furthermore, despite main water pipes running through the area, the community was left to raise their own funds to connect to the supply, only for the water to be shut off shortly after.
Living in informal shacks with no consistent water or electricity, the resident expressed deep skepticism that the current administration can rectify the crisis. He suggested that the Treasury should withhold the municipality’s funding entirely until after the local elections.
“Let us get the new administration, let’s say the new council, then we can see from there,” he urged, warning that current politicians will merely use the released funds as campaign material while leaving the community’s suffering unchanged.
