By JN reporter
Municipalities' failure to remit third-party payments—such as pension fund contributions, medical aid deductions, and tax obligations—will take center stage at the weekend ANC meeting, as the ruling party grapples with the financial mismanagement plaguing local government structures.
The issue has raised alarm within the party, with growing concerns about its impact on service delivery, employee welfare, and public trust.
This comes after the Minister of Finance, Enoch Godongwana, recently announced his intention to withhold 39 municipalities' July 2025 tranche of local government equitable share and conditional grants for their persistent failure to pay third parties.
Of great concern to the Free State ANC is that ten of the defaulters are in the Free State province, owing a whopping R872 million combined to SARS, AGSA, and Pension Fund. The matter is further exacerbated by the R9.5 million owed to the Vaal Central water utility by three defaulting municipalities in the province.
According to a reliable source within the party’s provincial executive committee, the matter is expected to take center stage at the meeting scheduled to start today at the Bram Fischer Building, which serves as the headquarters of the Mangaung Metropolitan Municipality.
“The PEC has called municipal troikas to explain themselves. The party leadership has hinted at the recall of some mayors who are not performing their duties. This is expected to be announced on Monday during a media briefing,” said a source.
The ten affected municipalities in the Free State include Kopanong municipality with over R370 million debt to SARS, AGSA, and Pension Fund, followed by Mafube with over R253 million outstanding to the Pension Fund.
Other defaulting municipalities are Letsemeng, Mohokare, Masilonyana, Matjhabeng, Nketoana, Maluti A Phofung and Phumelela.
Godongwana warned that should the municipality fail to submit the evidence that SARS, pension funds, and other relevant statutory third parties have been paid fully, “the national treasury will approach Parliament to endorse that the national treasury stop the transfer of all the LGES due to the municipality over the remainder of the 2025/26 municipal financial year for the municipality’s persistent failure.”
He said that a similar approach will be followed for the municipalities that persist with unfunded budgets and that the ANC PEC must intervene in the identified municipalities to ensure their financial recovery and turnaround.
