The Democratic Alliance (DA) in the Northern Cape reiterates our call for an urgent discussion between provincial stakeholders on municipal support and interventions, particularly at cash-strapped municipalities where salaries come at a cost to services.
Earlier this week, the Frances Baard District Municipality agreed to provide a bailout of R2.9 million to the struggling Magareng Local Municipality just to cover salaries for June 2026. The district will therefore subtract the bailout of R2.9 million from the original allocation of R5.5 million that was budgeted for support to Magareng in the 2026/27 year. The original allocation, which has now been cut by 52%, was intended purely for critical capital and infrastructure projects that are essential for service delivery and will now be spent on salaries instead.
We understand the compassion for workers who, through no fault of their own, would be left without an income if the district did not intervene.
But bailouts cannot become a convenient substitute for proper financial management. This is the second time in the current term that Magareng asked for a bailout from the district because it cannot pay salaries. As it stands, Magareng spent R7.9 million on consultants performing financial tasks in the 2024/25 year. The Auditor-General previously indicated that it takes the municipality more than 1 400 days to pay creditors and that 97% of its debts are unlikely to be paid. Magareng will find itself in dire straits again if it fails to address systematic financial challenges, improve revenue collection, implement its audit action plan, and adhere to recommendations from oversight bodies.
Local municipalities are increasingly under pressure to pay salaries, with the Thembelihle Local Municipality also warning staff it will pay June 2026 salaries late. The persistent non-payment of municipal accounts by provincial departments contributes to abysmal revenue collection rates and empty municipal coffers, which makes it difficult for municipalities to meet their obligations to staff and residents.
We will therefore continue to seek long-term, sustainable solutions from provincial stakeholders.