Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Tjaart van der Walt and Sesotho soundbite by Cllr Kabelo Moreeng.
The Democratic Alliance confirmed that the National Treasury has issued a formal notice to Mangaung Metropolitan Municipality under section 216(2) of the Constitution, warning that the Metro’s December equitable-share allocation may be withheld due to severe and persistent breaches of the Municipal Finance Management Act (MFMA).
This is one of the most serious financial enforcement measures available to the Treasury and signals a Metro on the brink of fiscal failure and service delivery collapse.
Despite the gravity of this threat, the Executive Mayor has failed to table the Treasury letter and its implications before Council, keeping both councillors and residents in the dark. This is not in compliance with legislation.
In terms of MFMA section 52(d), the Mayor must report to Council on “the implementation of the budget and the financial state of the municipality.”
A threatened stoppage of the equitable share is unquestionably a material financial event and must be disclosed immediately.
Furthermore, MFMA section 60(1)(c) requires the Accounting Officer to report “any impending financial problems” to the Mayor, and Council must be allowed to consider the City’s response as needed for the constitutional process under section 216(2).
Meanwhile, Mangaung’s finances are collapsing. Diesel shortages and non-payment to contractors have already led to a failure to provide basic service delivery in the City in November.
MPAC, the key oversight body mandated to deal with UIFW, is itself dysfunctional. As set out in a DA letter to the Speaker on 6 November, MPAC has not followed its approved work plan.
In a last-ditch attempt to address the Treasury and DA letters, on 18 November, a last-minute MPAC meeting was held without prior access to the documentation, contrary to the Standing Rules and MPAC Terms of Reference.
A day later, more than R7 million in UIFW expenditure was presented under the same procedural defects. This breakdown undermines lawful oversight at a time when Mangaung needs it most.
Treasury requires Mangaung to show a 75% reduction in its UIFW balances, implement consequence management, and demonstrate tangible action. The Metro is nowhere near compliance, placing its equitable share and service delivery at immediate risk.
We will therefore request an urgent Council meeting at which the Mayor must table the complete Treasury correspondence and provide a full account of Mangaung’s financial position and plans to rescue the City’s finances.
The residents of Mangaung deserve transparency, not secrecy, while their City stands on the edge of collapse.