MEC Mosenogi calls for decisive action to strengthen municipal financial governance
Phokeng – 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, MEC 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.
“The audit outcomes we 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,” said MEC Mosenogi.
The MEC said 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.
Provincial Treasury’s 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.
MEC 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.
The MEC expressed concern over the continued escalation of unauthorised, irregular, fruitless and wasteful expenditure (UIFW&E), which has reached R72.1 billion across the province’s 22 municipalities. She said the persistent increase in irregular expenditure, coupled with weak consequence management, continues to undermine financial sustainability and public confidence in local government.
“Municipal Public Accounts Committees, Audit Committees and Disciplinary Boards must become fully functional and actively enforce accountability. Financial misconduct cannot continue without consequence if we are serious about restoring financial discipline,” she said.
MEC Mosenogi further expressed concern that many municipalities continue to ignore approved funding plans and key recommendations issued by Provincial Treasury. Among the recurring shortcomings identified are unrealistic revenue projections, inadequate cost-containment measures, insufficient investment in repairs and maintenance, poor implementation of cost-reflective tariffs and weak compliance with the Municipal Budget and Reporting Regulations.
She urged municipalities to implement their funding plans without delay, strengthen internal controls, improve oversight structures and ensure that every incident of unauthorised, irregular, fruitless and wasteful expenditure is properly investigated in accordance with the Municipal Finance Management Act.
“The withholding of equitable share is not an end in itself. It is the consequence of persistent failures in financial management, governance and accountability. Municipalities must now take ownership of their financial recovery by implementing corrective measures, strengthening consequence management and restoring public confidence through sound governance,” MEC Mosenogi concluded.
End.
Issued by North West Provincial Treasury. For more information contact: Media Liaison Officer Lesedi Makhubela 062 103 2798 and Head of Communication Ms. Kesalopa Gill on 0795486352.