Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Dewald Hattingh and Sesotho soundbite by Cllr Tim Mpakathe.
The Democratic Alliance (DA) has formally rejected the 2025/2026 Adjustment Budget tabled by the Mayor before the Mantsopa Municipal Council and will request that the municipality urgently table a corrected and credible adjustment budget that complies with the requirements of the Municipal Finance Management Act (MFMA). The DA will also continue to exercise strict oversight to ensure that the municipality’s finances are managed responsibly and transparently in the interest of residents and voters.
Based on the first four recommendations contained in the adjustment report, it is clear that the proposed adjustment budget is fundamentally flawed and not funded as required by legislation. The report proposes that operational revenue be reduced from R423.3 million to R412.3 million. However, the figures presented in the adjustment reflect revenue increasing to approximately R435 million. This contradiction raises serious concerns about the credibility and accuracy of the financial information presented to Council. A budget built on incorrect or inflated revenue projections is both irresponsible and misleading. In terms of governance, this means the municipality is effectively making spending decisions based on numbers that do not reflect the real financial position of the municipality, which undermines proper planning and responsible financial management.
In addition, operational expenditure is increased to R508.9 million while revenue projections remain uncertain and inconsistent. Capital revenue and capital expenditure adjustments also fail to demonstrate financial sustainability, and the report does not adequately explain how the significant gap between revenue and expenditure will be funded. For residents, this means the municipality may promise services and projects that it simply cannot afford to deliver, resulting in further delays in road maintenance, unreliable basic services, and growing frustration among voters who continue to pay rates and taxes.
Section 18 of the MFMA is clear: a municipal budget may only be approved if it is fully funded from realistically anticipated revenues and cash-backed surpluses. Approving an unfunded budget would deepen the municipality’s financial crisis, increase the risk of service delivery failures, and ultimately harm the voters and residents of Mantsopa. For example, the municipality may struggle to maintain roads, repair water infrastructure, or respond effectively to community needs because the necessary funds are not actually available despite being reflected in the budget.
The DA will continue to demand responsible governance, realistic revenue projections, and strict expenditure controls to place the municipality on a path to financial recovery.