Deputy Minister Namane Masemola: Cooperative Governance Dept Budget Vote 2025/26, NCOP

Honourable Chairperson of the NCOP
Honourable Minister Hlabisa
Honourable Members of the NCOP
Hon MECs
SALGA Representative
Fellow South Africans

Good afternoon,

It is an honour to rise in support of Budget Vote 3 for the Department of Cooperative Governance.

This debate marks yet another step and signifies an advancement in a process of social transformation and establishment of developmental state, towards realising the National Development Plan’s goal of effective, accountable, and service-oriented municipalities.

The articulated policy trajectory towards greater integration, improved capacity, enhanced service delivery within a strong framework of intergovernmental relations.

We continue to engage municipalities and stakeholders because a strong local government is essential for both service delivery, democratic participation and development of our country.

Hon Chairperson: Our theme “Every municipality must work” reflects our commitment to addressing persistent challenges and ensuring local government drives development and prosperity. As the current local government term nears its end, we continue to assess the performance of municipalities to ascertain areas of support and intervention, to ensure that they implement their constitutional mandate.

Mindful of the successive administrations and their positive leadership impact on the policies, models and systems and the adopted development plans. And in anticipation prepare for a smooth transition in the course of national purpose.

This budget is crucial for resources allocation informed by our strategic plan to ensure operational efficiency and impact. In fact, it is a synthesis of planned expenditure and available resources that is constantly influenced by external factors and internal adjustment, to turn policy into impact and translate programmes into beneficial activities for our communities.

The programmes listed in the appropriation of the department account for areas of focus and the amounts allocated.

Strengthening local government through policy and interventions

Hon Chairperson

Local government is a confluence of varied local interests, in fact an intersection of relations of power, governance and civic activism. A point where diverse perspectives converge potentially leading to collaboration and shared outcomes, thus giving hope and confidence.

The extent to which complexities and intricacies sought to eclipse the character of these institutions in the service of the people, could not be left unattended to. The Cabinet-established Inter-Ministerial Committee (IMC) is driving turnaround strategies in the targeted municipalities focusing on the following, informed by range and threshold:

• Reducing Eskom and Water Boards debt
• Enforcing financial recovery
• Fixing service delivery challenges
• Facilitating payment of departmental debts to municipalities
• Strengthening ward committees for heightened public participation

Similarly, we will continue to support the 39 municipalities that are under section 139 and section 154. Of course, as CoGTA we are leading the process and through our collective leadership and collaborative efforts, we are impacting the situation. The melancholic tidings, regarded as facts about municipalities, by those whose generalisation and articulation lacks appreciation of data, balance of evidence and coherence of logic, lack dialectical reasoning and in fact a demonstration of grandiose delusions.

Hon Chairperson

The repositioning of the sector and primarily its system, through the White Paper policy review, is fundamental in determining the policy horizon to guide transformation of local government in our country and bring fundamental changes in the management of the system. In this regard, we are on track given the large-scale engagements and broad consultations, at various platforms. This budget will enable the smooth development of this much anticipated policy outcome.

Hon Chairperson

Working together with provincial departments of CoGTA, we conducted oversight visits to seventy (70) municipalities between September 2024 and May 2025, bringing together departments like National Treasury, Water and Sanitation, Energy, met with traditional leaders and SALGA to drive accountability of municipalities and offer support – within the context of the District Development Model. These visits are aimed to assess service delivery, engage municipal leadership, and identify challenges affecting community development, as we are inspired by necessity for action.

Provision of basic services like water, electricity, refuse collection, maintenance of sewerage systems, better roads, safety in communities, engagements with other spheres of government to facilitate realization of the set national objectives, remain our pre-occupation.

The disbursement to municipalities through this budget would continue to enable them to deliver services to their citizens, and build the capacity required to lead and manage their affairs.

Like His Excellency the Commander in Chief of the Armed Forces of this country, President Matamela Cyril Ramaphosa once said: “Municipalities must become both providers of social services and facilitators of inclusive economic growth.”

Through this nationwide outreach, we reaffirmed our commitment to strengthening local government and making every municipality work. This budget will enable us to continue to work and provide the much-needed support and intervention in the identified areas.

In the Eastern Cape, we engaged with municipalities in the districts of Chris Hani and Amathole, including both Buffalo City Metro, and the Makana Local Municipality.

In the Free State, we visited the districts of Thabo Mofutsanyana and the Lejweleputswa.

Our outreach continued in the Northern Cape, where we visited the ZF Mgcawu District and the Pixley ka Isaka Seme District. In Mpumalanga, we focused on the Gert Sibande District.

In the North West province, we visited the Ngaka Modiri Molema District.

In Limpopo, we visited both Mopani and Sekhukhune Districts.

In KwaZulu-Natal, our focus was on Msunduzi Local Municipality, where we held in-depth discussions with the municipal leadership and stakeholders. Furthermore, we interacted with other provinces through different platforms of engagements and conversations.

Hon Chairperson

This budget we are considering today will enable us to take this process forward as we position and sharpen municipal systems for improved performance. Through our collective leadership with the MECs, nothing is insurmountable.

And I would like to thank them for their focused attention in ensuring efficacy and productiveness of the system. As Che Guevara once said, “Passion is needed for any great work, and for the revolution, passion and audacity are required in big doses.”

These visits allowed us to gain firsthand insight into both the persistent challenges and the inventive pursuits of efforts in response to the identified challenges. We remain committed to deepening of ethical, moral and values-based leadership to address malfeasance and malversation and negate any manifestation of whatever kind.

Hon Chairperson

Despite the commitment of many municipal officials, and provision of leadership and oversight by councillors, several recurring challenges were noted across the board:

Key challenges identified:

• Financial management: Irregular, fruitless, and wasteful expenditure persists due to unqualified personnel and weak internal controls.
• Infrastructure backlogs: Communities reported ageing water systems, poor sanitation, potholes, and unreliable waste collection.
• Political instability: Infighting and interference continue to disrupt service delivery.
• Vacant critical posts: Delays in appointing municipal managers and CFOs weaken administration.
• Inadequate community engagement: Many communities feel excluded from IDP processes due to poor consultation.

These issues amongst others remain top on our plan for support and intervention as the overarching law of the country enjoins us.

Key recommendations:

• Enforce accountability and sharpen instruments of accountability ecosystem: Strengthen consequence management and audit follow-ups.
• Build capacity: Fill critical vacancies and provide targeted training.
• Invest in infrastructure: Launch a rescue plan focusing on water, sanitation, and roads.
• Stabilize leadership: Strengthen intergovernmental cooperation to reduce political disruption.
• Improve public participation: Roll out ward-based engagement and improve communication with residents.

Given the above-mentioned areas of need for continuous attention, it is very clear that other alternatives should be explored hence our joint endeavours with some universities, research institutions and the Department of Science, Technology and Innovation, to introduce technology and build capacity for innovation, as unavoidable options in handling municipal affairs.

This budget will enable us to advance this programme and related programmes included in our Annual Performance Plan.

House Chairperson, as CoGTA we strive to support improved performance and the turnaround of our municipalities.

The State of the Local Government Report produced by CoGTA and the Auditor General’s Report have also highlighted a number of areas which must be addressed.

To this effect, improvement plans are in place and oversight is being tightened.

Municipalities must now respond to audit findings with clear action plans, rooted in consequence management. MPACs, Audit Committees, and AGSA will track unauthorized, irregular, fruitless and wasteful expenditure, poor SCM practices, and regulatory failures with no tolerance for repeat offenders.

Building municipal capacity

We are investing in the people who deliver:

• 500 municipal officials were upskilled in infrastructure planning last year
• 300+ unemployed youth joined learnerships
• In 2024/25, 118 municipalities are benefitting from MISA technical support

We are launching a candidacy programme for over 300 young people to become registered artisans and technical professionals.

Financial stability and debt management

Municipal financial recovery is non-negotiable.

• 47 municipalities in the Eskom debt relief programme have defaulted again. Treasury has issued final warnings and non-compliance will lead to removal and legal action.
• 11 municipalities met the criteria and had a third of their debt written off, a sign that support and accountability can work together

Government, through the National Treasury, is reviewing the Local Government Fiscal Framework to better reflect current municipal needs and demographics, especially for small and rural areas.

Delivering infrastructure and enhancing MIG performance

We have seen the collapse of infrastructure in several of our municipalities, compromising service delivery and impacting the lives of our communities. It negatively affects development in these areas.

A persistent challenge confronting municipalities in delivering municipal infrastructure and maintenance remains an area of concern. This is largely attributed to inadequate technical capacity among municipal officials and fragmented planning processes misaligned with infrastructure procurement requirements.

• 21 municipalities with failing wastewater systems will now have their MIG funds converted from Schedule 5B to 6B, enabling direct departmental intervention
• MIG performance is improving with support from MISA and National Treasury, including cost reimbursement models, re-gazetting funds, and encouraging asset maintenance

However, we will continue to assemble the capacity required to enable intervention and support as municipalities build their own internal capacities.

Community work programme (CWP)

The CWP, with a budget of R2.9 billion in 2025/26, is being repositioned for greater impact.

With the department now managing the programme directly, we are shifting focus to:

• ICT training for participants
• Private sector partnerships for job placement
• Green economy initiatives like solar and waste-to-energy projects

This is about turning public works into public value – real jobs, real skills, real empowerment.

We remain committed to making this programme one of the reliable public employment programmes to empower participants and provide a path for growth and development.

Conclusion

Honourable Chairperson

The budget presented by the Minister is supported for approval.

This budget is our response to a nation that wants results.

It backs our policies with resources, and our plans with purpose.

We are turning the corner.

Our mission is simple: to make every municipality work, so that every South African can live in dignity, safety, and prosperity.

I thank you.

#ServiceDeliveryZA