The Eastern Cape municipalities crisis has reached a breaking point, with seven local governments on the verge of collapse. According to the United Democratic Movement (UDM), decades of African National Congress (ANC) mismanagement have left these municipalities financially crippled. Consequently, only six of 39 municipalities achieved clean audits in 2023/24, as revealed by the Provincial Treasury’s parliamentary report.
Seven Municipalities in Peril
For instance, Makana, Sundays River Valley, Amathole, Raymond Mhlaba, Amahlathi, Walter Sisulu, and King Sabata Dalindyebo municipalities may not survive another month without intervention, UDM’s Bulelani Bobotyane warned. Meanwhile, Koukamma holds just three months’ reserves.
“This is not an isolated failure but a product of ANC misrule,” Bobotyane declared, highlighting the deepening Eastern Cape municipalities crisis.
Massive Financial Mismanagement
Moreover, the scale of financial recklessness is alarming. Nelson Mandela Bay Metro amassed R22 billion in irregular expenditure, while Buffalo City Metro recorded R11.6 billion and Amathole District R1.3 billion, per the UDM. Shockingly, over R300 million in infrastructure funds was returned unspent to National Treasury. As a result, communities endure failing services, exacerbating the Eastern Cape municipalities crisis.
“This is an unforgivable betrayal,” Bobotyane emphasized.
Government Debts Fuel Crisis
Additionally, government departments owe municipalities over R208 million in unpaid rates, crippling revenue collection.
“This failure by the state is internal sabotage,” Bobotyane argued.
Thus, the Eastern Cape municipalities crisis worsens as essential services like water and sanitation suffer. The state’s hypocrisy—lecturing citizens on payments while defaulting—further undermines local governance.
Urgent Calls for Intervention
Therefore, the UDM demands that National CoGTA Minister Velenkosini Hlabisa deploy intervention teams to stabilize finances and investigate corruption, including Nelson Mandela Bay’s R30 billion evergreen contract scandal.
Similarly, portfolio committee chair Zweli Mkhize insisted on accountability, stating, “Progress must be visible, not theoretical.”
These steps are critical to resolving the Eastern Cape municipalities crisis.
Leadership Failures Criticized
Finally, the UDM holds Premier Oscar Mabuyane and CoGTA MEC Zolile Williams accountable for years of negligence. For example, Buffalo City Mayor Princess Faku’s claim that her municipality is functional ignores its R11.6 billion in wasteful spending. The Eastern Cape municipalities crisis demands immediate action to restore trust and deliver vital services to struggling residents.
