By Emily Setona
QWAQWA – In an exclusive interview with The Guard, Member of Parliament Pitso Noe has voiced deep concern over the possible suspension of the Local Government Equitable Share to the Maluti-a-Phofung Local Municipality.
This follows a stern letter from Finance Minister Enoch Godongwana to Cooperative Governance and Traditional Affairs (CoGTA) Minister Velenkosini Hlabisa, in which Treasury signals its intention to withhold funds from 39 defaulting municipalities – including Maluti-a-Phofung.
“The equitable share forms a major portion of the municipality’s operating budget,” said MP Noe. “If Treasury follows through and withholds it, the consequences will be severe. Many core municipal programmes are funded directly from that allocation. Given that Maluti-a-Phofung is already failing to collect electricity revenue, this move could cripple service delivery.”
According to the Treasury’s letter, Maluti-a-Phofung owes the South African Revenue Service (SARS) R2.7 million – one of several critical debts it has failed to pay. Treasury has warned that failure to settle these debts or provide proof of payment within seven days could result in the suspension of the July equitable share and conditional grants. Future disbursements would be made in phased tranches, subject to strict conditions.
Ongoing engagements
MP Noe hinted that behind-the-scenes negotiations may already be underway.
“There might have been discussions between CoGTA and Treasury. What’s most important to note is that the Minister of Finance has committed to consulting Parliament before finalizing the decision. That means, for now, the equitable share for this month should still be released – unless compelling evidence is presented to Parliament to justify the freeze,” he said.
The Treasury has demanded that municipalities submit proof of payment of debts to SARS, water boards, pension funds, and medical aid schemes. Failure to comply could not only halt funding but also lead to a Section 139(5) intervention, allowing the provincial government to take over the municipality’s financial affairs.
MP Noe was clear about accountability:
“The Executive Mayor and the municipal manager must come forward and confirm whether the municipality has met Treasury’s requirements. Residents deserve transparency, especially when basic services are already hanging by a thread.”
He further warned that Treasury’s proposed sanctions go beyond technicalities—they pose a serious threat to governance and accountability.
A looming crisis
Maluti-a-Phofung, which has already experienced service delivery protests and reputational damage, could face a complete financial shutdown if urgent corrective measures are not taken.
“With most of the municipality’s revenue dependent on equitable share transfers, any disruption could paralyse local operations,” Noe stressed.
Core services such as waste collection, water supply, infrastructure maintenance, and social development initiatives would be the first to suffer—impacting the municipality’s poorest and most vulnerable residents the hardest.
“Given that Eskom is currently collecting electricity revenue—denying the municipality a major source of income to supplement its expenditure fund—this situation is even more precarious,” said Noe, referring to the existing Distribution Agency Agreement between MAP and Eskom aimed at managing municipal debt.
The letter from Minister Godongwana provides a narrow window for municipalities and CoGTA to respond. Written representations must be submitted within seven days, after which a final decision will be made.
“This is the time for leadership. The community deserves answers and a clear plan to ensure the continued delivery of essential services,” Noe concluded.
3 Responses
Denying citizens of their basic rights, enshrined in the Constitution of the Republic of South Africa, is unfair due to the following:
– Incompetent & unqualified municipal workers.
– Lack of monitoring (municipalities) by provincial and national government led to non accountability at local government.
– Some citizens have always been loyal by paying their dues, regularly, why are they also being punished?
Maluti A Phofung Municipality ought to be self-sufficient with the population figures
It’s a big question on what the officials are doing in order to ensure that sustainability!
I am not impressed 😰
Ita a very unfortunate and disguising since Maluti a Phofung Municipality Communities have been left in the cold ignored and isolated since the Enforced Maluti a Phofung Municipality without Communities concerns and Approval of the Maluti a Phofung Municipality undermining their Rights and Views when we’re Consulted during 1999/ 2000 Not to Almagamate Harrismith/ Kestell former Transitional Local Councils with Clean Audits and Good Services before the Municipal Structural Act 117 of 1998 came into operational.GreaterHarrismith Communities proposal was well presented,motivated and properly Outlined that Harrismith, Kestell and WardenTLCs Constitute the Municipality and leave Qwaqwa former Rural and Urban Transitional Local Councils as a Municipality foreseeing that Harrismith and Kestell will never Receive Good Service Delivery due to Qwaqwa Rural Areas under the Chieftainships that need special attention on Infrastructure, moreover No Services,absolutely Nothing the Municipality can collect as revenue ,as well as rates and taxes to sustain the Municipality. Lack of Authentic Leaders from National Government, Provincial, District worse at the Local Government, unqualified, Incompetent, unskilled family members, Political connected redundant individuals expected to run the Municipality, Poor Service Delivery Protests started as early as 2004( young protestor lost the life) 2009 Lesedi Clinic slightly tortured and never fixed to date( hardships and sufferings by our Elderly Senior Citizens to come to Harrismith Town only central Clinic even to Harrismith Farm Communities) 2021 Protest also took place +85 Young Protesters got arrested and charged with Public Violence and the young lady a bystander was run over by the hippo her leg amputated, our National Government ( Treasurer, COGTA) Ignored and Distance itself as if Everything is Normal in Maluti a Phofung Municipality for the past 25years showing Absolutely No Interest in Rescuing the poor Communities of GreaterHarrismith/ Kestell and the surrounding Farm Communities whose Farm- Schools were deliberately Closed and left to be Vandalised. Separating- Families as if we,re Not Human- beings while all Public Servants live lavish- lifestyles at the expense of the Tax- Payers bona-fide Residents suffers in their own Country of Birth under your Watch,One day God will answer our Prayers as GreaterHarrismith/ Kestell and the surrounding areas Communities..Lest we forget