By Ragheema Mclean
Finance Minister Enoch Godongwana says many municipalities can no longer rely on electricity sales as a major source of income, warning that the model is becoming unsustainable as electricity consumption declines.
Godongwana was speaking following National Treasury’s decision to temporarily suspend funding to 69 municipalities due to concerns around financial mismanagement.
He said municipalities need to improve revenue collection and strengthen financial management practices to ensure long-term sustainability and reliable service delivery.
“Most municipalities have relied on electricity as a source of revenue. People are migrating from the system at the moment, and that source, one way or the other, is becoming narrower. These municipalities have to think about what kind of revenue they have that will make them sustainable over the long term,” Godongwana said.
Meanwhile, the Motor Industry Staff Association (MISA) has criticised Treasury’s decision, saying withholding funding punishes vulnerable communities and workers while failing to address the officials responsible for financial mismanagement and corruption.
MISA spokesperson Phakamile Hlubi-Majola says accountability must be prioritised, warning that ordinary residents are bearing the consequences of poor governance.
“According to MISA, municipalities exist to deliver essential services that directly affect the daily lives of South Africans. While funding is withheld due to mismanagement, it is ordinary people who suffer, and workers face unsafe living conditions and unreliable transport while residents are left vulnerable, yet corrupt officials escape,” she said.
The union says government must focus on ensuring those responsible for financial failures are held accountable while protecting communities that depend on municipal services.
Photo: @Treasury_RSA/X
