By Charmaine Ndlela
ANC President Cyril Ramaphosa has vowed to impose consequences on municipalities that adopt unfunded budgets and warned that financial misconduct and reckless spending will no longer be tolerated under ANC-led local governments.
Ramaphosa was speaking at the ANC’s local government election manifesto rally at Riverside Park near Diepsloot in Johannesburg on Sunday, ahead of the November 4 elections.
Ramaphosa said the ANC would end the practice of adopting unfunded budgets and strengthen financial oversight across municipalities.
“Ending the practice of adopting budgets that are not funded, we will strengthen financial planning, improve audit outcomes and ensure that repeated financial misconduct has consequences,” he said.
He warned officials who steal public money or spend funds without authorisation that they would face consequences.
“Those who steal money and those who go spend money either on unauthorised basis or recklessly, there shall be consequences. There shall now be consequences of wrongdoings that people are doing. It’s no longer going to be like in the past that there were no consequences, now there will be consequences,” Ramaphosa said.
His remarks come as about 45% of municipalities — roughly 116 councils — continue to approve unfunded budgets, contributing to more than R142 billion in cumulative irregular expenditure and mounting debt owed to Eskom and water boards.
A total of 116 municipalities submitted unfunded budgets for the 2024/25 adjustment cycle, meaning they planned to spend money without sufficient revenue to cover their commitments.
Under Section 18 of the Municipal Finance Management Act, municipal budgets must be funded by realistically anticipated revenue and cash-backed allocations.
Persistent financial problems can trigger intervention under Section 139 of the Constitution.
The warning formed part of the ANC’s six-point local government turnaround plan, which the party says is aimed at restoring public confidence in municipalities and improving service delivery.
The ANC has committed to eliminating unfunded budgets, strengthening financial planning and improving audit outcomes.
Where the party governs, municipalities will be expected to act on Auditor-General findings within 12 months, while councils will be required to recover public funds lost through maladministration and corruption.
Mayors will also be required to account publicly for audit outcomes, corrective action and progress in implementing audit recommendations.
The manifesto further commits municipalities to publishing budgets, procurement information, council decisions, audit outcomes and performance information in accessible formats to allow residents to track how public funds are managed.
Ramaphosa also placed ANC councillors and mayors on notice, saying political representatives would be required to account directly to communities for their performance.
“The work will begin on the first day after the election. We are going to clock it. We’re going to clock it,” he said.
ANC mayors and councillors will be expected to publish their priorities, establish service delivery baselines and demonstrate measurable progress on urgent community needs.
The party plans to introduce public performance agreements and codes of ethical conduct for all ANC local government representatives.
Councillors will undergo regular performance assessments and leadership development programmes and report regularly to communities.
“The ANC is determined that municipalities reflect the diversity of our people,” Ramaphosa said.
The president also pledged to modernise municipal administration by expanding online access to core services, including account queries, service requests, building plans, rezoning applications and planning approvals.
The ANC said municipalities would continue providing in-person services for residents who cannot access digital platforms.
On economic development, Ramaphosa said the ANC would focus on bringing jobs and investment closer to communities by attracting industry to cities, towns, townships and rural areas.
The party plans to prioritise manufacturing, agro-processing, agriculture, tourism, fisheries, the creative economy, digital industries and green industries.
It also committed to supporting spaza shops and other small businesses, particularly in township and rural areas.
Ramaphosa said the party’s plan was to create more jobs and investment where people live.
“We will bring more industry to cities, towns, townships and rural areas. We will do more to create the conditions for investment, enterprise growth, job creation and inclusive local economic development,” he said.
He said the ANC would also seek to reduce the cost of living through fair and affordable tariffs, accurate billing and measures to reduce water and electricity losses.
“One of the most effective ways to support poor households that the ANC has introduced is the provision of free basic services. The ANC will protect and expand access to free basic services for qualifying households,” Ramaphosa said.
“Our cities, towns and villages must be places where people can find work, where workers can earn a decent income, where businesses can grow, and where entrepreneurs can build enterprises.”
He said ANC-led governments were already providing funding and other support to spaza shops and small businesses, particularly in rural and township areas.
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