Matlosana’s unfunded adjustment budget exposes financial failures

Issued by Johannes le Grange – DA Councillor, Matlosana Local Municipality
13 Mar 2025 in Press Statements

Note to Broadcasters: Please find attached soundbites in English and Afrikaans by Johannes le Grange

On the 28th of February 2025, the ANC-led municipality in Matlosana, under the leadership of Executive Mayor Fikile Mahlophe, once again failed to demonstrate fiscal responsibility by presenting an unfunded adjustment budget. This marks a continued departure from sound financial principles, with clear indications that the municipality is falling short in key revenue areas such as water, electricity, assessment rates, basic sewerage, and refuse removal.

The DA will again write to MEC Motlalepula Rosho, as unfunded budgets being condoned by the MEC, would present a continued financial disaster for Matlosana. The DA demands to receive the facts surrounding this ongoing financial mismanagement, and unfunded budgets.

Despite these challenges, an increase in expenditure was approved on 28 February, further compounding the financial strain on the municipality going forward.

The adjustment budget further worsens the municipality’s financial crisis, which includes the failure to address the nearly R11 billion in outstanding debt collection, a serious concern. Additionally, the lack of action on the almost R500 million in water losses and R400 million in electricity losses highlights ongoing financial mismanagement.

The ANC’s inability to secure the required 40 votes during the vote led to an irregular motion for a caucus break, allowing the ANC to convince ACDP Councillor SJ Dial to reverse his position and vote in favor of approval. It is also disappointing that the Forum 4 Service Delivery continued its strategy of supporting the ANC. Voters must realise that a vote for these parties is essentially a vote for the ANC.

The DA in Matlosana will continue to expose these failures and call for urgent corrective actions to protect the financial future of the municipality.