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“Of the allocated funding to local government, R86.9 billion is to support the provision of free basic services to 11.2 million households,” he said.

The minister acknowledged that many municipalities remain in financial and operational distress, limiting their ability to deliver essential services effectively.

Audit outcomes show that 63% of municipalities are in financial distress, while the proportion of clean audits remains low. Godongwana described this as an “unacceptable reality”.

“A central challenge with municipalities is that they not only differ in capacity, but also in

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