By REGINALD KANYANE
5 August 2026 – The Democratic Alliance (DA) in North West said the revenue collection has deteriorated, despite Kgetlengrivier Local Municipality remaining under a Financial Recovery Plan and Section 139 intervention. The DA said the municipality now seeks a R10 million overdraft to meet its financial obligations.
DA PR councillor, Mduduzi Maphanga said they will request the Provincial and National Treasury to assess the implementation of the Financial Recovery Plan (FRP). Maphanga said the DA in Kgetlengrivier is deeply concerned that the municipality’s Financial Recovery Plan (FRP) is failing to deliver the financial turnaround residents were promised.
“Despite the municipality remaining under a Section 139 intervention and implementing a Financial Recovery Plan, the latest financial reports indicate that revenue collection has deteriorated significantly instead of improving.
“While some progress has reportedly been made in curbing expenditure, the municipality continues to struggle to collect the revenue needed to remain financially sustainable. The seriousness of the situation was highlighted when the mayor informed the council that the municipality had no option, but to pursue a R10 million overdraft facility after the Provincial Executive Representative (PER) reportedly advised against it,” he said.
Maphanga further said according to the mayor, failure to secure the overdraft would leave the municipality unable to meet its financial obligations. He added that the DA questioned this decision and raised concerns that, while financial shortfalls were referenced, council was not provided with a clear breakdown of the projected deficits or the long-term implications of taking on additional debt.
“An overdraft is not a financial recovery strategy. It is a temporary measure that merely postpones the problem. Once the borrowed funds are exhausted, the municipality risks finding itself in exactly the same financial position, unless the underlying failures in revenue collection are addressed.
“The continued decline in collection rates raises serious questions about whether the Financial Recovery Plan is being implemented effectively and whether sufficient oversight is being exercised over its implementation,” said Maphanga.
He said they will therefore write to both the Provincial Treasury and National Treasury requesting an independent assessment of the implementation of the Financial Recovery Plan, including the performance of the Provincial Executive Representative (PER) and the Municipal Support Representative responsible for assisting the municipality’s financial recovery. Maphanga said residents deserve more than short-term financial fixes that increase future liabilities.
“They deserve a municipality that collects revenue efficiently, manages public finances responsibly and delivers value for every rand collected. As the 2026 Local Government Elections (LGE) approach, residents have an opportunity to choose a municipality built on sound financial management, accountability and value for money,” he said.
Picture: Kgetlengrivier Local Municipality
The Guardian 