Ngwathe Local Municipality's R2 Billion Budget Rejected as Unfunded by Free State Treasury

The Ngwathe Local Municipality's ambitious R2.099 billion budget for the 2025/2026 financial year has been rejected by the Free State Provincial Treasury, which branded it as unfunded and non-compliant with the Municipal Finance Management Act (MFMA).

- By Thabo Mosia

Tabled by Mayor Victoria de Beer-Mthombeni during her State of the Municipality Address (SOMA) on 30 May 2025, the budget promised sweeping improvements in service delivery, infrastructure, and economic growth. However, the Democratic Alliance (DA) and the Treasury have slammed it as unrealistic and unsustainable, citing inflated revenue projections and inadequate funding for critical services. This detailed breakdown explores the mayor's plans, the DA's criticism, the Treasury's findings, and what it all means for Ngwathe's residents.

The Mayor's Vision: A R2.099 Billion Plan

In her SOMA speech on 30 May 2025, Mayor Victoria de Beer-Mthombeni presented the R2.099 billion budget as a "historic milestone" for Ngwathe Local Municipality. She described it as a roadmap to a "vibrant, prosperous, and sustainable municipality," shaped by public participation through roadshows and community input. The budget, a 59% jump from the previous year's R1.4 billion, was split into R1.383 billion for operating expenditure (a 10.2% increase), R171 million for capital projects, and a projected surplus of R544 million.

Key Focus Areas and Achievements

The mayor outlined four priority areas:

1. Basic Service Delivery:

New vehicles were purchased to improve services: "13 bakkies, a honey sucker, two cherry pickers, three compactor trucks, and a TLB" for fixing water leaks, potholes, and waste management.

The Traffic Unit was revived on 1 June 2025 to enhance road safety and generate revenue through fines.

2. Infrastructure Development:

Water access improved in Vredefort with refurbished boreholes, supported by Coca-Cola.

Electrification connected 805 households using a R15.585 million Integrated National Electrification Programme (INEP) grant. Ngwathe's top grant performance in the Free State earned an additional R135.8 million for 2025/2026 to electrify 571 more homes.