Note to Editors: Please find attached English soundbite by Cllr Ian Riddle, Afrikaans soundbite by Cllr Estelle Noordman and Sesotho soundbite by David Masoeu MPL.
The DA will prioritise sound financial management and proper accounting systems when we take over municipalities, while holding Kopanong Local Municipality accountable for its outstanding debt to Xhariep District Municipality.
We will write to the municipal manager to urgently address the matter.
Kopanong’s failure to consistently pay its rental obligations has placed significant financial pressure on the District Municipality, which relies heavily on government subsidies and Kopanong as one of its few sources of outside income. This ultimately affects the District’s ability to provide services to communities.
The Xhariep District Municipality has taken Kopanong Local Municipality to court for failing to pay rent. The two municipalities entered into a lease agreement in 2016, which was extended until June 2025. Despite this, Kopanong has consistently failed to meet its rental obligations.
In April 2025, attorneys were appointed to recover the outstanding debt, which had reached approximately R10 million, excluding interest and legal costs. Attempts to resolve the matter between the two municipalities have not produced a satisfactory outcome.
So far, R198 000 has been spent on legal costs. Once again, ANC-led municipalities have wasted huge amounts of hard-earned taxpayers’ money on attorneys’ fees, while the dispute remains unresolved.
The District Municipality relies heavily on government subsidies, with Kopanong being a major source of outside income. The failure to collect money owed to the District further strains its finances and its ability to deliver services to residents.
In July, the District Municipality’s equitable share was withheld due to non-compliance with debt payments. A municipality with limited income sources cannot allow large amounts of outstanding debt to accumulate without decisive action. Poor financial management in one ANC-run municipality is placing further pressure on another.
The DA has consistently maintained clean audits by ensuring that strong financial controls and proper accounting practices are in place.
When we take over municipalities, our priority will be to restore sound financial management, ensure proper accounting practices and make sure that money owed to municipalities is collected so that services can be delivered to residents.