Matjhabeng Local Municipality Building
By Thabo Mosia
The Democratic Alliance (DA) has won a case against the Free State provincial government regarding the Matjhabeng Local Municipality’s failure to provide basic services to its residents. The High Court ruling, delivered in Bloemfontein on 22 October 2024, found that both the provincial and national governments failed in their constitutional obligations to intervene in the financial and operational mismanagement of the Matjhabeng Municipality.
Background of the Case
The DA initiated legal action earlier in 2024, citing persistent failures by the Matjhabeng Local Municipality, located in the Free State, to deliver essential services such as water and electricity. The municipality, which includes towns like Welkom, Odendaalsrus, and Virginia, has been plagued by financial mismanagement and service delivery issues for years. It has amassed billions of rands in debt to Eskom and the Water Board, leaving residents in dire conditions, with water shortages and crumbling infrastructure.
In a statement made earlier this year, the DA outlined the gravity of the situation. The party pointed to the municipality’s liabilities exceeding its assets by almost R8.5 billion, with the most alarming debts being over R4.7 billion owed to Eskom and R4.8 billion to the Water Board. In addition, the municipality faced R150 million in electricity losses and nearly R324 million in water losses annually, alongside rampant unauthorised and irregular expenditure, amounting to hundreds of millions .
The High Court’s Findings
In its judgment, the High Court declared that the Matjhabeng Municipality had breached sections 152(2) and 153(a) of the South African Constitution. These sections mandate local governments to provide sustainable services, promote social and economic development, and structure their administration to prioritise community needs. The court found that Matjhabeng had consistently failed to meet these obligations due to a severe financial crisis and systemic mismanagement .
The court also ruled that the Free State provincial government, led by Premier Mxolisi Dukwana, had failed to intervene under section 139(5) of the Constitution. This section requires provincial authorities to step in when a municipality cannot fulfil its responsibilities. The national government, represented by the Minister of Cooperative Governance and Traditional Affairs, was also found to have failed in its duty to intervene under section 139(7) .
Court Orders and Financial Recovery Plan
The court’s ruling goes beyond simply highlighting the failures of the Matjhabeng Municipality. It includes a detailed order compelling both the provincial and national governments to develop and implement a comprehensive financial recovery plan within six months. The plan, to be prepared in consultation with the National Treasury and local municipal leadership, aims to restore financial stability and ensure the delivery of basic services to the community.
If the Matjhabeng municipal council fails to approve necessary legislative measures, such as budgets and revenue-raising initiatives, the court has ordered the dissolution of the council. An administrator would then be appointed until a new council is elected. This drastic step aims to prevent further deterioration of services .
DA’s Reaction to the Victory
The DA has hailed the court ruling as a significant win for the residents of Matjhabeng, many of whom have suffered for years under the weight of the municipality’s financial mismanagement. George Michalakis, DA Member of Parliament and Constituency Head for Matjhabeng, stated that this victory not only reinforces the importance of financial discipline but also compels the provincial government to take responsibility. He emphasized that this was a crucial step in ensuring that municipalities like Matjhabeng do not collapse entirely under ANC mismanagement .
Michalakis further noted that the failure of the provincial government to implement a recovery plan could result in the dissolution of the council. This would present an opportunity for the DA to gain further support in future elections, as public dissatisfaction with the ANC’s handling of the municipality continues to grow .
Persistent Challenges for Matjhabeng
Despite the court’s ruling, the road to recovery for Matjhabeng is expected to be long and arduous. Years of mismanagement have left the municipality in a precarious state, with infrastructure in dire need of repair and public trust in local governance at an all-time low.
In September 2024, Free State Premier Maqueen Letsoha-Mathae visited the municipality to address some of the most pressing issues, including rampant corruption, theft of water infrastructure, and the exodus of skilled municipal staff. While her administration has pledged a R2 billion investment to refurbish key infrastructure, critics argue that these efforts are too little, too late .
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