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Msukaligwa’s Budget Is Financially Unsustainable

The Freedom Front Plus (VF Plus) did not support the proposed budget of the Msukaligwa Local Municipality (MLM), which includes Ermelo, Breyten, Chrissiesmeer, Lothair and Davel, because it is financially unrealistic and unsustainable. The operating budget has a shortfall of more than R542 million, with expenditure totalling R1,91 billion in contrast to projected revenue of […]

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The Freedom Front Plus (VF Plus) did not support the proposed budget of the Msukaligwa Local Municipality (MLM), which includes Ermelo, Breyten, Chrissiesmeer, Lothair and Davel, because it is financially unrealistic and unsustainable.

The operating budget has a shortfall of more than R542 million, with expenditure totalling R1,91 billion in contrast to projected revenue of only R1,37 billion.

Consumer debt already exceeds R1,5 billion, with a large portion being older than 90 days, while debt impairment has risen to R167 million. The collection rate remains low at 74%, well below the target of 95%.

The proposed tariff hikes are as follows:

  • Water: 6%
  • Sanitation: 7,7%
  • Electricity: 12,7%
  • Refuse removal: 23,5%

As a result of illegal connections, theft and vandalism, the Municipality is currently losing approximately 61% of its electricity and 66% of its water. These losses exacerbate the pressure on already outdated infrastructure and networks that are overloaded and poorly maintained.

The Freedom Front Plus proposed practical solutions to improve revenue, including motions on service delivery and financial recovery, as well as proposals to amend electricity and water by-laws with heavier fines for theft and routine inspections. The ANC rejected all these proposals.

The Auditor-General (AG) confirmed that MLM has ignored its recommendations to improve performance for four years. There is no consequence management for poor performance, no effective action plans for economic growth and no political will to restore basic services.

The Freedom Front Plus simply could not support a budget that is unsustainable, fails to address residents’ basic needs and that is to the detriment of ratepayers.

Residents deserve a municipality that enforces fiscal discipline and prioritises basic service delivery.

On 4 November 2026, residents have the opportunity to vote for the Freedom Front Plus, and oust the ANC by replacing it with a party that puts service delivery and sound financial management in Msukaligwa first.

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