The budget of the AbaQulusi Local Municipality (Louwsburg, Vryheid) for the 2026/27 financial year paints a picture of a municipality under severe financial strain with an IFP government that has no workable turnaround plan.
The budget was adopted during a recent council meeting without sufficient debate or documentation. Councillors were not given enough time to examine the relevant documents and make an informed decision.
The recommendation to write off R172,4 million in unauthorised expenditure is particularly concerning. These include, among other things:
• R102,4 million for finance and administration
• R32,3 million for energy sources
• R27,3 million for water management
• Millions more for other municipal departments
The internal audit report and the latest Auditor-General (AG) report highlight weak financial controls, non-compliance with the Municipal Finance Management Act (MFMA), under-budgeting and unrealistic practices. Only 30% of projected targets were achieved, despite 100% expenditure.
The Municipality has acknowledged that it can no longer meet its Eskom commitments. Water losses remain extremely high at more than 50%, while electricity losses stand at 26%.
Infrastructure projects such as road works and community facilities remain incomplete, while budgets for repair and maintenance have been slashed further.
It is unfair to expect residents to pay higher tariffs while there is no financial control and service delivery continues to deteriorate.
The Freedom Front Plus implores the Municipality to:
• Urgently intensify financial controls
• Conduct an independent investigation into unauthorised expenditure
• Consistently apply consequence management
• Implement a realistic and funded turnaround plan
• Aggressively reduce water and electricity losses
• Prioritise infrastructure maintenance over non-essential expenditure
On 4 November, residents have the opportunity to vote for the Freedom Front Plus and keep AbaQulusi out of the hands of the IFP.
