As the ANC National Executive Committee convenes for its pivotal lekgotla this weekend, it is anticipated that Gauteng’s municipal mayors will prioritise the Division of Revenue and the future of the local government’s funding model in their intervention demands.
They caution that, without immediate reform, service delivery and municipal finances will continue to deteriorate.
Sharper national focus on the key policy
Johannesburg Mayor Dada Morero said he will use the lekgotla to press for sharper national focus on the key policy and governance levers that shape municipal viability, starting with the funding framework that determines how resources flow to councils.
“Critical are the division of revenue, acceleration of service delivery and the discussion on the amendments of the white paper. Preparation of municipal audit reports and how to improve audits. Those are critical issues for me to engage at the lekgotla.”
Morero’s intervention comes as distress in local government increasingly appears systemic rather than isolated. With the impact of weakening municipal capacity visible through water interruptions, electrical faults, sanitation breakdowns, infrastructure decay and deepening public frustration.
Mayors are expected to argue that any national response must move beyond diagnosis. It must deliver practical, time-bound action. Including stabilising key management posts, tightening governance controls and restoring basic functionality, where municipalities are failing.
A central issue expected to dominate the lekgotla agenda is the Division of Revenue Act (DORA). Mayors are warning that the current funding model is increasingly out of sync with on-the-ground realities. Across Gauteng, municipalities face rising costs from bulk suppliers. This while collection rates weaken under the weight of unemployment and household distress.
Spiral of deferred basic services
The widening gap between what councils must pay to keep services running and what they can realistically recover from residents and businesses is feeding a spiral of deferred maintenance, deteriorated infrastructure, service interruptions and further non-payment.
West Rand Mayor Lucky Sele highlighted widening financial instability. With municipal debt rising as communities struggle to pay for services in a strained economy.
“Municipalities are in debt; many people don’t pay for their services. Our debtors book is rising above R4-billion as we speak. Therefore the funding model (DORA) must be reviewed. Because the expectation that local government must raise its revenue is not realistic.”
The combined message from mayors is that DORA reform is not merely about additional transfers. It is about resetting the assumptions behind municipal funding. So they reflect shrinking household incomes, stagnant local economies and the real cost of sustaining ageing infrastructure.
Rising losses amid escalating bulk tariffs
Sele outlined the financial squeeze created when infrastructure losses rise at the same time that municipalities remain exposed to escalating bulk tariffs.
“Ageing infrastructure results in over or between 20-30 water and electricity losses. While Eskom and Rand Water have increased their revenue. Abandoned or hijacked buildings as well as sewer infrastructure that is collapsing.”
His warning points to a system where large volumes of water and electricity are lost before they can be billed. While municipalities continue paying higher input costs. Thus effectively financing a service chain that is leaking value at every step.
Alongside funding reform, mayors are expected to push for acceleration of service delivery that is measured in tangible improvements rather than announcements and short-term fixes. This includes shorter repair times for burst pipes and sewer failures. Also reducing electricity losses, consistent refuse collection and a stronger shift towards preventative maintenance.
Gauteng mayors want a clearer national support package that strengthens rapid response capability. One that improves the procurement of critical spare parts, and reinforces technical units in municipalities. Where skills shortages and instability have hollowed out capacity.
White Paper on Local Government
Another key item expected to feature is the proposed amendments to the White Paper on Local Government. Mayors argue that the existing model no longer matches the pressures of rapid population growth, expanding informal settlements and uneven municipal capability.
The debate is expected to revolve around how to modernise municipal governance, strengthen professionalism, and draw firmer lines between political oversight and operational management to reduce instability and improve performance.
The issue of municipal audit outcomes is also expected to be framed as a funding and functionality signal. With mayors linking financial governance failures to service delivery collapse.
Weak internal controls, unexpected spending, and constant changes in top finance positions are seen as signs of bigger problems. They lead to more demands for better management of consequences and focused help for municipalities that often do not pass audits.
Broader economic and social deterioration
Sele further connected the local government funding crisis to broader economic and social deterioration. He warned that municipal instability both reflects and deepens hardship in communities.
“Unemployment has increased as economic activities have declined over time. More people are unemployed today, many people are living in poverty. The standard of living is high, crime is high, there is illegal mining in our space. The economy needs to be fixed, and the material conditions must change.”
