How Free State Municipalities Squandered R7 BillionWhat Parliament Is Doing About It

Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs has raised alarm over more than R7 billion in unauthorised, irregular, fruitless and wasteful expenditure in Free State municipalities, warning that persistent financial mismanagement continues to cripple basic service delivery.

The committee said the staggering figure, uncovered during a joint parliamentary oversight visit in August last year, reflects “deep-seated governance failures” that have left many communities without reliable water, sanitation, and electricity services.

The Chairperson’s Warning

Committee chairperson Dr Zweli Mkhize acknowledged that there has been progress but remained concerned.

“We note that there has been progress and acknowledge those efforts. However, we remain concerned about the persistence of poor outcomes and the continuing dysfunctionality within municipalities.”

The Ongoing Crisis

During a follow-up meeting on 1 April 2026, the committee found that many issues identified months earlier remain unresolved:

• Ballooning debt

• Failing infrastructure

• Weak accountability

• Collapsing service delivery systems

• Reliance on temporary measures such as water tankers

• Ongoing electricity outages

Mangaung

MPs criticised delays in holding officials accountable for financial misconduct, noting limited consequences for those implicated in wrongdoing.

Letsemeng, Kopanong, and Moqhaka

These municipalities continue to face:

• Mounting Eskom debt

• Unfunded budgets

• Failed infrastructure projects

In Letsemeng, the collapse of the Koffiefontein Water Treatment Works has worsened water shortages in towns like Petrusburg.

Lejweleputswa District Municipality

MPs were told that R141 million of a R156 million budget is spent on salaries , leaving just R7 million for service delivery.

The committee also questioned an alleged R50 million overpayment to senior managers and demanded clarity on how much has been recovered.

The Committee’s Demands

The committee has instructed all affected municipalities to submit detailed reports within 10 days , outlining:

• Financial recovery plans

• Infrastructure interventions

• Steps to improve accountability

“Municipalities must prioritise their service delivery functions, such as water provision,” Mkhize said.

“Communities cannot continue to bear the consequences of weak governance, poor planning and a lack of accountability. We require clear timelines, decisive action and tangible improvements on the ground.”

The Bottom Line

R7 billion wasted. Water treatment works collapsed. Salaries consuming 90% of budgets. Eskom debt mounting.

Parliament is watching. The committee is demanding action. But for the communities of the Free State, the taps remain dryand the lights are still off.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com