Tag Archives: North West MEC for Finance

North West municipalities’ UIFW expenditure reaches R72.1 billion 

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Picture: North West MEC for Treasury, Kenetswe Mosenogi

By REGINALD KANYANE

29 July 2026 – North West MEC for Finance, Kenetswe Mosenogi has called on municipalities across the province to take urgent and decisive action to strengthen financial governance, improve accountability and restore public confidence in local government. Addressing the Municipal Intergovernmental Forum (MuniMEC) held at the Royal

Marang Hotel in Phokeng Township, near Rustenburg, Mosenogi said municipalities have entered a critical phase of the municipal financial year, where preparations for Annual Financial Statements (AFS) and the implementation of post-audit action plans must receive priority attention.

She emphasised that audit readiness should not be treated as a year-end compliance exercise, but rather as a continuous process supported by sound financial controls, credible record management and effective governance throughout the financial year. Mosenogi further said the audit outcomes they achieve this year will be determined by the extent to which municipalities implement corrective measures arising from previous audit findings.

“We cannot expect improved outcomes, if we continue to repeat the shortcomings of the past. The current municipal administration has a responsibility to hand over municipalities that are financially stronger and institutionally more resilient to the incoming councils following the 2026 Local Government Elections (LGEs).

“Our assessment of the 2026/27 municipal budgets shows encouraging progress, with 11 municipalities adopting funded budgets compared to ten during the budget tabling stage. However, several municipalities continue to operate with unfunded budgets or have failed to submit credible budgets for assessment, highlighting that financial recovery remains uneven across the province,” she added.

Mosenogi also addressed the withholding of equitable share allocations, stressing that the measure should not be viewed as punitive, but as a constitutional mechanism aimed at protecting public resources and restoring sound financial governance, where municipalities persistently fail to comply with financial management legislation. She noted that during the previous financial year, 13 municipalities had portions of their equitable share withheld, prompting interventions by the North West Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs (CoGTA) to support municipalities in meeting critical financial obligations.

“I would like to express concern over the continued escalation of unauthorised, irregular, fruitless and wasteful expenditure (UIFW&E), which has reached R72.1 billion across the province. The persistent increase in irregular expenditure, coupled with weak consequence management, continues to undermine financial sustainability and public confidence in local government,” said Mosenogi.

Meanwhile, the Democratic Alliance (DA) Provincial Leader and Member of Provincial Legislature (MPL) in the North West Provincial Legislature (NWPL), Freddy Sonakile said: “North West’s municipalities are in financial ICU. The National Treasury acts after repeated failures to comply with financial legislation.

More than half of the province’s municipalities have failed residents through poor governance.

“Your vote in 2026 can put North West back on the road to recovery. The Democratic Alliance (DA) welcomes National Treasury’s decisive action to temporarily withhold July 2026 equitable share transfers from municipalities that have persistently failed to comply with the law.”

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Mosenogi to table adjustment budget for 2024/25 financial year

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Picture: North West MEC for Finance, Kenetswe Mosenogi

By REGINALD KANYANE

21 November 2024- North West MEC for Finance, Kenetswe Mosenogi will exercise legislative imperative and table the annual provincial adjustment budget for the 2024/25 financial year as stipulated by Section 31 (1) of the Public Finance Management Act 1 of 1999.

Mosenogi said the tabling of the Adjustment Budget, follows the recent tabling of the Medium Term Budget and Policy Statement (MTBPS) by Minister of Finance, Enoch Godongwana. She further said Section 31 (2) of PFMA stipulates that an adjustment budget of a province may only provide for the appropriation of funds that have become available to the province, unforeseeable and unavoidable expenditure recommended by the provincial Executive Council of the province within a framework determined by the Minister.

“This includes any expenditure in terms of Section 25. Money to be appropriated for expenditure already announced during my tabling of the annual budget. The shifting of funds between and within votes or to follow transfer of functions in terms of Section 42.

“The utilisation of savings under a main division within a vote for the defrayment of excess expenditure under another main division within the same vote in terms of Section 43 and the rollover of unspent funds from the preceding financial year,” said Moenogi.

She added that the adjustment budget aims to address budget pressures in key service delivery departments by redirecting funds to areas, where they are mostly needed. Mosenogi said the adjustment budget will be tabled at the North West Provincial Legislature on Tuesday at 9am.  

Members of the media are invited and encouraged to attend. Media practitioners are reminded to carry their Identity Documents as they are pre-requisite to gain access to legislature chambers.

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Ditsobotla under mandatory Financial Recovery Plan (FRP)

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Picture: The Ditsobotla Local Municipality

By BAKANG MOKOTO

28 August 2024- The Phase Four implementation of the Re-loaded Thuntsha Lerole Accelerated Service Delivery Programme was launched in Ditsobotla Local Municipality ON 23 August 2024. As part of this intensive programme that is geared towards improving service delivery, North West MEC for Finance, Kenetswe Mosenogi, held a crucial session with officials from the municipality.

The interaction focused on exploring viable solutions to the ongoing challenges faced by the municipality, particularly in light of its current financial crisis. As part of the Provincial Treasury’s intervention, the municipality has been placed under a mandatory Financial Recovery Plan (FRP) by the National Treasury, highlighting the urgent need for immediate and sustainable financial reform.

Mosenogi emphasized the importance of good governance, proper financial management, and robust revenue collection in ensuring that Ditsobotla can effectively serve its residents. She said it is imperative that the municipality adheres to the principles of accountability and transparency in managing public resources.

“Only through consistent and responsible financial practices, we can ensure that the people of Ditsobotla receive the reliable, consistent services they deserve. The Financial Recovery Plan, developed by the National Treasury Municipal Financial Recovery Service, is a binding instrument designed to restore Ditsobotla’s financial stability and enable it to meet its obligations.

“This plan is not merely a guideline but a crucial framework that will determine the municipality’s capacity to deliver essential services. Revenue collection is a key indicator of a functional municipality,” said Mosenogi.

She further said without it, the municipality cannot sustain its operations or deliver services effectively. Mosenogi added that failure to implement this recovery plan, will directly impede their ability to collect revenue, which in turn will compromise the ability to serve the people.

“In the spirit of patriotism and a deep love for Ditsobotla and its people, it is essential that the municipality implements proper internal controls. These controls are not just administrative measures, but vital tools that protect public resources, ensure their efficient use and support effective revenue collection.

“We must do things right, not just because we are required to, but because it is our duty to the people we serve. North West Provincial Executive, in accordance with Section 139 (5) of the Constitution and Section 143 of the Municipal Finance Management Act (MFMA), has resolved to intervene in Ditsobotla Local Municipality,” she said.

Mosenogi said the intervention aims to address the financial crisis and put the municipality back on a path of sustainable governance. She said the Provincial Treasury is committed to supporting Ditsobotla in this endeavour as mandated by Section 154 of the Constitution, which requires national and provincial governments to strengthen municipal capacity.

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