Joint Media Statement: Oversight Delegation From Parliament and Free State Legislature Concludes First Day of Oversight

Parliament, Friday, 25 July 2025 - Members of Parliament and Members of the Free State Provincial Legislature yesterday delivered a clear and firm assessment of Free State municipalities' performance and accountability practices during an oversight engagement in Bloemfontein.Three parliamentary committees, the Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA), the Standing Committee on Public Accounts (SCOPA), and the Standing Committee on Auditor General, led by the Chairperson of COGTA, Dr Zweli Mkhize, are in a joint oversight initiative with Members of the Free State Provincial Legislature to address persistent governance and financial underperformance in the province's municipalities.With 11 municipalities appearing before the legislature, the delegation was met with a sobering picture. Members of the joint committees heard that municipalities in the province have accumulated staggering debts, including one that owes over R8 billion to a water board. In contrast, others have failed to pay hundreds of millions in pension contributions deducted from workers' salaries. Exorbitant salary bills, bloated staff establishments, and a complete collapse of internal control systems also hamstrung many municipalities, members noted.Another concern was internal audit capacity. Members heard that where audit and financial management units exist, they are often non-functional or sidelined. This means that reports of irregular, unauthorised, fruitless, and wasteful expenditure remain unaddressed for years. In some municipalities, documents that could have enabled proper investigations were reportedly destroyed by former administrations, raising deep concerns about efforts to obscure corruption.Dr Mkhize summed up the dual nature of the crisis. On one hand, he said, there are municipalities whose collapse is mainly the result of unsustainable structural conditions. They are predominantly rural, with a limited revenue base and minimal local economic development. As a result, these municipalities depend primarily on national grants. They are also unable to attract or retain skilled personnel and are frequently destabilised by community protests and political turmoil."This kind of administrative and political instability has created a climate where municipalities cannot operate effectively," Dr Mkhize said. Members urged that these cases be escalated to the national government level for long-term structural solutions.Dr Mkhize noted that there are also municipalities with revenue-generating capacity that mismanage their resources due to poor leadership, weak governance, and other factors. These municipalities are failing to implement effective financial recovery plans, often ignoring legal compliance requirements and showing little to no progress in consequence management of errant officials.Some municipalities have not conducted a single disciplinary process or forensic investigation in years, despite consistent audit findings and deteriorating outcomes, members heard. "It is a kind of self-inflicted injury," he said, stressing that many of the challenges could be managed through better staffing practices and internal reforms.Another layer of dysfunction that Members flagged is the outstanding fees several municipalities owe the Office of the Auditor-General. In addition, municipalities often mismanage conditional grant funding, resulting in missed targets and delays in infrastructure development. Members emphasised that the quality and credibility of municipal budgeting, planning, and expenditure tracking must be urgently addressed, along with improvements in monitoring consultants, internal audit systems and the functioning of audit committees.The Members also had a directive for the Free State provincial government, particularly the MECs for Finance and Cooperative Governance, to submit detailed progress reports to Parliament within three months. These reports must reflect specific actions taken, identify individuals responsible for past irregularities and outline clear, measurable steps to restore operational and financial discipline.Dr Mkhize said that Parliament is no longer willing to accept broad commitments. Instead, concrete evidence of change is now required. The committees will deliberate on all reports received. He said that Members want to see the Auditor-General's future findings reflect significant improvement if national oversight is to be considered effective. "The crisis in the Free State is no longer a matter of concern - it is a matter of urgency, he said."We cannot allow this to continue indefinitely. We are here to take responsibility, demand accountability and ensure consequence management is no longer optional, but a non-negotiable requirement of public service." stressed Dr Mkhize. The residents of the Free State, as well as others in other parts of the country, deserve municipalities that are functional, transparent, and committed to delivering quality services, Dr Mkhize said.Today, the joint oversight visit will conclude with 15 more Free State municipalities appearing before Members.ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON COGTA, DR ZWELI MKHIZE AND THE OFFICE OF THE SPEAKER IN THE FREE STATE LEGISLATURE, MR MXOLISI DUKWANA For media enquiries, please contact the committee's media officer:Name: Alicestine October (Ms)Cell: 083 665 4345E-mail: [email protected] media enquiries for the Office of the Speaker/Free State Legislature, please contactName: Jongi Ndakana (Mr)Cell: 062 484 5682Email: [email protected]