The Free State provincial government has officially placed the troubled Matjhabeng Municipality under administration.
This follows an announcement by the MEC for Cooperative Governance, Traditional Affairs and Human Settlements, Mr. Saki Mokoena, who invoked Section 139(5)(a–c) of the Constitution. The announcement was formally presented to the municipal council and senior management during a council meeting held in Welkom on 29 May.
The decision follows a ruling by the Free State High Court, delivered on 23 October 2024, in response to an application seeking a declaratory order and ancillary relief regarding the municipality’s failure to fulfill its constitutional obligations.
The judgment revealed serious and persistent material breaches by the municipality, including its failure to ensure the sustainable provision of services to its communities, promote social and economic development, and maintain a safe and healthy environment. It also failed to adequately structure and manage its administration, budgeting, and planning processes to prioritize the basic needs of residents and drive local development.
In response, CoGTA, in collaboration with both the provincial and national treasuries, will deploy a team of officials, led by an Executive Council (Exco) representative, to assist with the development and implementation of a financial recovery plan, as required under Section 139(5) of the Constitution. This intervention is aimed at rebuilding the municipality’s capacity to deliver essential services. The names of the officials who will serve on this task team will be announced shortly.
In a statement issued shortly after the court ruling, David McKay, a DA Member of the Free State Legislature, said the Democratic Alliance had won an important case against the Matjhabeng Local Municipality and the provincial government.
“This ruling confirms that the provincial government has a constitutional obligation to intervene in municipalities that fail to meet the financial management standards set by the Municipal Finance Management Act (MFMA),” McKay said.
He added that under the ANC’s administration, Matjhabeng had become the single largest debtor to a water board in the country, owing more than R7 billion with basic service delivery nearly collapsing.
A multi-disciplinary task team, reportedly to be led by Anna Buthelezi, will now be deployed to Matjhabeng. This committee, composed of officials from both provincial and national government, will be responsible for implementing the financial recovery plan and restoring municipal services.
Residents of Welkom, Virginia, Odendaalsrus, Hennenman, Allanridge, Ventersburg, and other towns under Matjhabeng’s jurisdiction may finally see long-overdue intervention.
For decades, communities have decried the near-total collapse of service delivery and critical infrastructure. Residents have endured ongoing sewerage spills, water shortages, and frequent pipe bursts that flood streets. High levels of crime, including illegal mining and cable theft, continue to sabotage water and electricity infrastructure, often leaving towns without essential services for weeks at a time.
