Mafube
In a damning assessment that exposes deep-rooted failures in local government delivery, Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa has singled out several Free State municipalities, including Mafube, for chronic underspending on critical infrastructure grants. In a detailed letter dated 27 November 2025 to MEC for COGTA and Human Settlements TZ Mokoena, Hlabisa warned that persistent inefficiencies could lead to millions in funding being reallocated elsewhere, depriving poor communities of essential services like water, sanitation, roads, and electricity. The concerns stem from a joint evaluation on 4 November 2025, which revealed systemic issues such as project delays, capacity shortages, and poor planning, putting at risk the province’s R875 million Municipal Infrastructure Grant (MIG) allocation for 2024/25. This revelation comes amid national trends where municipal underspending reached alarming levels, with the Auditor-General reporting that 15 Free State municipalities underspent by more than 10% on infrastructure budgets in recent years, contributing to a broader crisis where only 50.7% of R42.6 billion in national infrastructure grants was utilised by March 2025.
The letter, which will become a standing agenda item in future Ministerial and Members of Executive Council (MinMEC) meetings, calls for urgent interventions to reverse the trend. With Free State’s economy projected to grow at a sluggish 0.5% in 2024 and its GDP share declining to 4.8%, this underspending exacerbates poverty and unemployment, hindering efforts to stimulate local development. Hlabisa’s proactive stance highlights the need for accountability in a province where municipal debt and governance failures have long been red flags, as evidenced by the Democratic Alliance’s September 2025 report estimating R807 million in projected conditional grant underspending by year-end.
Minister Hlabisa’s Urgent Call to Action
Addressing Mokoena in her oversight role, Hlabisa expressed “significant and ongoing concerns” about the performance of grants like the MIG, Informal Upgrading Development Grant (IUDG), Regional Bulk Infrastructure Grant (RBIG), Water Services Infrastructure Grant (WSIG), Integrated National Electrification Programme (INEP), Urban Settlements Development Grant (USDG), Energy Efficiency and Demand Side Management (EEDSM), and Expanded Public Works Programme (EPWP). These funds, governed by the Division of Revenue Act (DORA), are designed to deliver basic infrastructure to underserved areas, reduce backlogs, and boost economic activity.
The evaluation involved COGTA, the provincial department, Municipal Infrastructure Support Agent (MISA), Departments of Water and Sanitation, Sports, Arts and Culture, and Provincial Treasury. It scrutinised all MIG-receiving municipalities, focusing on those flagged for poor first-quarter performance. Hlabisa stressed that while policy frameworks are solid, implementation falls short due to financial, governance, and institutional hurdles.
Systemic Failures: Root Causes of Underspending
The assessment identified several interconnected problems driving the underspending:
- Perennial Underperformance: Municipalities consistently fail to exhaust allocations, leading to reallocations that deprive local communities of needed infrastructure. Nationally, this trend saw R5.3 billion in MIG cuts in 2023/24 due to similar issues.
- Project Delays and Poor Planning: Inadequate preparation, sluggish supply chains, and contractor underperformance result in incomplete projects, with minimal consequence management.
- Capacity Constraints: Lack of technical expertise hampers planning and monitoring, despite support from MISA and other agencies.
- Neglect of Maintenance: New assets deteriorate rapidly without upkeep, ignoring DORA’s 10% MIG allocation rule for repairs. The Auditor-General’s report notes Free State’s maintenance spending at just 2.9%, far below the 8% norm.
- Poor Cashflow Management: Inaccurate forecasting and selection of financially unstable providers cause further delays.
- Risk of Fund Stoppage: Without rapid improvements via catch-up plans, grants may be halted, exacerbating service gaps.
Catch-up plans presented were deemed risky, reliant on external factors like procurement delays prone to objections or non-responsive bids.
Highlighted Underperformers: Mafube and Others in the Spotlight
The letter lists performance as of 30 September 2025, with red-flagged municipalities showing dismal rates. Mafube is noted for 21.88% on USDG, among others: - Letsemeng: 25% MIG, 11% WSIG.
- Mohokare: 11% MIG, 3% WSIG.
- Masilonyana: 15.5% MIG, 23.5% WSIG.
- Tokologo: 3% MIG, 30% WSIG, 9% EPWP.
- Tswelopele: 14% MIG, 80% WSIG.
- Nala: 38.15% MIG, 22% WSIG, 45% INEP, 0% EEDSM.
- Setsoto: 29% MIG, 44% RBIG, 11.6% WSIG.
- Dihlabeng: 15.6% MIG, 14% IUDG, 8.3% RBIG, 7.8% WSIG, 19.7% INEP.
- Nketoana: 95% RBIG.
- Maluti-a-Phofung: 38% RBIG.
- Mantsopa: 38.1% RBIG, 18.43% EPWP.
- Moqhaka: 21.88% USDG.
- Mangaung: 13.6% MIG, 17.1% IUDG, 2.3% RBIG, 0% WSIG, 1.8% INEP, 0% USDG.
A table details indicators like vacant MM, CFO, technical positions, audit outcomes (e.g., qualified, disclaimer), unfunded budgets, and distressed status. Mafube shows vacancies in MM, CFO, and technical roles, with an outstanding unfunded budget, classifying it as distressed. Similar issues plague Maluti-a-Phofung and Nala, linking governance failures to grant mismanagement.
National Treasury’s Q4 2024/25 report shows aggregate municipal underspending at 35.1% or R233.7 billion unspent from R665.9 billion, with Free State contributing significantly. PARI’s October 2025 webinar noted similar trends, emphasising the need for better financial transparency.
Recommended Actions: Oversight, Accountability, and Support
Hlabisa urged Mokoena to implement: - Strengthen Oversight: Enhance monitoring for DORA compliance, involving MISA, Treasury, and DDM champions.
- Mandate Consequence Management: Enforce penalties for underperformance post-support.
- Intensify Technical Support: Collaborate for dedicated assistance.
- Promote Integrated Planning: Align IDPs with sectoral plans to avoid delays (e.g., awaiting Eskom or licences).
This will be a recurring MinMEC item, with Mokoena reporting on progress.
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