The Freedom Front Plus (VF Plus) has serious concerns about the Govan Mbeki Local Municipality’s draft budget for the 2026/2027 financial year as it is not only administratively flawed, but also financially unsustainable and unfunded.
The Municipality’s budget relies heavily on uncertain grant allocations, an unrealistically high projected collection rate – which never materialises – and revenue streams that simply do not exist. It is a recipe for further decline.
Key concerns regarding the draft budget include:
• Salaries consume approximately 80% of the budget, while basic service delivery has effectively ground to a halt.
• Bad debt stands at around R3,9 billion (65% of total debt), while the Municipality already owes Eskom R6,7 billion – with no sign of a credible repayment plan.
• The budget also relies heavily on external grants that are not guaranteed.
Despite poor service delivery, residents are hit with steep tariff increases: electricity tariffs are set to rise by 12,74% – exceeding the rate approved by NERSA – while water and sanitation will increase by 11%, and refuse removal by 3,7%. Prepaid electricity tariffs have already been increased without proper consultation.
In fact, the public participation process was a fiasco. Power outages derailed the public meeting held on 14 April, while poor attendance on 23 April clearly demonstrated a lack of public confidence in the process.
The Freedom Front Plus cannot support this unfunded and unrealistic budget.
The party demands a viable, funded budget that prioritises service delivery over an unsustainable wage bill and escalating debt.
Govan Mbeki residents deserve better than this ANC-controlled Municipality that spends more money than it can realistically generate.
