31 years later: ANC has bankrupted the Eastern Cape municipalities
Statement by Bulelani Bobotyane, Provincial Secretary of the UDM in the Eastern Cape
The United Democratic Movement (UDM) in the Eastern Cape is deeply disturbed by revelations that seven municipalities in the Eastern Cape are on the verge of financial collapse. This is not an isolated administrative failure. It is the product of decades of African National Congress (ANC) misrule that has left local government structures hollow, indebted, and incapable of delivering even the most basic services.
The Provincial Treasury’s presentation to Parliament revealed that Makana, Sundays River Valley, Amathole, Raymond Mhlaba, Amahlathi, Walter Sisulu and King Sabata Dalindyebo municipalities will not survive beyond a month without intervention. Only Koukamma has slightly more cash reserves, barely enough for three months. Under ANC governance, 33 out of 39 municipalities are distressed, with only six receiving clean audits in the 2023/24 financial year.
The scale of financial recklessness is staggering. Nelson Mandela Bay Metro recorded R22 billion in unauthorised, irregular, fruitless and wasteful expenditure. Buffalo City Metro recorded R11.6 billion. Amathole District recorded R1.3 billion, OR Tambo District R1.1 billion, and Inxuba Yethemba R910 million. Despite this, more than R300 million in unspent infrastructure funds was returned to the National Treasury. This is an unforgivable betrayal of the people. A province drowning in unemployment and poverty is being robbed not only by corruption but by chronic incompetence.
The UDM in the Eastern Cape holds Premier Oscar Mabuyane and Cooperative Governance and Traditional Affairs (CoGTA) MEC Zolile Williams politically responsible for the collapse of governance in the province. For years they have been warned about the dire state of municipalities but responded with empty plans and recycled rhetoric.
MEC Williams himself has acknowledged that Nelson Mandela Bay accounts for over seventy percent of the province’s R30 billion in irregular expenditure, driven by evergreen contracts that he admits are criminal. Yet there is no visible action, no prosecutions, and no accountability.
The rot runs deep. A captured CFO in Sundays River Valley inflated consultancy contracts from R4 million to R38 million. Evergreen contracts in Nelson Mandela Bay have become the feeding trough for politically connected service providers. State departments owe municipalities such as Nelson Mandela Bay more than R208 million in unpaid rates and service charges, proof that even government does not respect local government.
It is shocking and unacceptable that national and provincial government departments owe municipalities more than R208 million in unpaid rates and service charges. These are not private companies or delinquent ratepayers. They are organs of the same state that lectures ordinary citizens about paying their municipal accounts. This failure by the state to pay what it owes is an act of internal sabotage. It cripples the very municipalities tasked with delivering water, electricity, sanitation and waste removal to communities. When government departments do not honour their obligations, they drain the lifeblood of local government, its revenue base, and accelerate the collapse of essential services.
The UDM in the Eastern Cape finds this behaviour reprehensible and hypocritical. It exposes a culture of impunity within the ANC government where accountability is applied selectively. Citizens are threatened with disconnection for non-payment, while government institutions continue to consume services without consequence. This situation also shows the utter breakdown of intergovernmental cooperation in the Eastern Cape. The Premier and his MECs have allowed a crisis where the left hand of government starves the right. How can municipalities be expected to survive when the very departments that fund them are also their biggest debtors?
The UDM in the Eastern Cape is deeply concerned by the recent remarks of Buffalo City Mayor Princess Faku, who told Parliament that her municipality is “neither dysfunctional nor cash-strapped.” This statement is misleading and irresponsible. Both the Provincial Treasury and the Auditor-General have confirmed that Buffalo City incurred R11.6 billion in irregular, fruitless and wasteful expenditure, and returned unspent infrastructure funds while residents continue to endure failing services. For a mayor to deny this reality shows disregard for the truth and for the daily struggles of the people she serves. It reflects the ANC’s entrenched culture of denial, where leaders protect their image instead of fixing what is broken. The UDM calls on Premier Mabuyane to act against Mayor Faku for misleading Parliament and the public. The people of Buffalo City deserve honesty, accountability and real solutions, not empty political theatre.
As a partner in the Government of National Unity (GNU), the UDM in the Eastern Cape believes this crisis demands direct intervention by the National CoGTA Minister Velenkosini Hlabisa. The Minister must immediately:
1. Deploy a national intervention team to the seven municipalities on the brink of collapse, with powers to stabilise finances, strengthen governance, and halt corruption.
2. Oversee forensic investigations into the misuse of funds, fraudulent consultancy contracts, and the R30 billion evergreen contract scandal in Nelson Mandela Bay.
3. Ensure strict consequence management, including suspension and prosecution of accounting officers, councillors and mayors who enabled this rot.
4. Coordinate intergovernmental debt recovery, compelling all government departments to pay what they owe to municipalities.
5. Enforce public transparency and reporting, ensuring that all municipal recovery reports demanded by Parliament are made public within thirty days.
6. Work with National Treasury and the Department of Water and Sanitation to restore critical infrastructure and basic service delivery in the affected municipalities.
7. Hold Premier Mabuyane and MEC Williams politically accountable for years of failed oversight and negligence under their leadership.
The UDM in the Eastern Cape also reminds the ANC, as a partner in the GNU, that it carries the greatest responsibility for this crisis. Its national leadership must urgently call its counterparts in the province and municipalities to order. The continued collapse of governance in the Eastern Cape is not just a local embarrassment; it undermines the credibility of the GNU’s commitment to clean, accountable and effective government. If the ANC is sincere about renewal, it must start by cleaning its own house in this province.
For thirty-one years, the ANC has turned the Eastern Cape into a case study of corruption and decay. The people deserve better. They deserve leaders who act, not talk, who serve, not steal. The UDM in the Eastern Cape calls on all honest public servants, civil society and communities to rally behind the call for accountability and renewal.
