ANC-led govt spends 80% of budget on salaries, hampering service delivery

Issued by Cllr. Jacques van Rensburg – DA Councillor Xhariep District Municipality
03 Jul 2026 in Press Statements

Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Jacques van Rensburg and Sesotho soundbite by David Masoeu MPL.

The Democratic Alliance (DA) will engage with Xhariep District Municipality and continue holding the municipality accountable to ensure that sound financial management and governance reforms are implemented.

The DA is deeply concerned about the ongoing financial instability within the Xhariep District Municipality, which is currently governed by the African National Congress (ANC).

According to repeated warnings issued by the Auditor-General, the municipality remains at continuous risk of failing as a going concern due to persistent financial mismanagement and the absence of sound governance controls.

Despite these annual red flags, the municipality continues to operate with a salary bill exceeding 80% of its total budget, a level widely regarded as unsustainable for any local government entity. This leaves minimal resources available for service delivery, infrastructure maintenance, and economic development, placing residents and businesses under increasing strain.

The municipality’s worsening financial position has once again been highlighted by the late payment of employee salaries this month, further illustrating the severity of its cash flow challenges.

The DA notes that these patterns of governance failure have become entrenched, with no meaningful corrective action taken to restore financial stability or rebuild public trust. Without decisive change, the municipality’s ability to function effectively will continue to deteriorate.

Where the DA governs, it has established a public record of clean audits, disciplined financial management, and turnaround strategies that restore stability and enable service delivery.

We urge eligible residents of the Xhariep District to register and participate in the upcoming local government elections, and we remain committed to advocating for accountable, transparent, and service-driven local government.