WHY IS THERE NO COUNCIL DISOLUTION AT MAFUBE?

In May 2022, the Free State Provincial Executive Council (EXCO) invoked a mandatory intervention at the Mafube Local Municipality (MLM).This action followed a High Court ruling on 28 April 2022 in favour of Mafube Business Forum (MBF), that compelled the province to intervene due to a persistent financial crisis and a failure of the municipality to provide basic services. 

The Provincial EXCO chose not to dissolve the municipal Council as prescribed in subsection 139(5) (b), thereby taking full responsibility for the intervention at MLM and the implementation of the Municipal Financial Recovery Plan (MFRP).

As of January 2026, the status and key details of this intervention are as follows:

1. Mandatory Financial Recovery Plan (MFRP) 

   1. Purpose: The invocation of Section 139(5) specifically targets a municipality in "serious or persistent material breach of its obligations to provide basic services or to meet its financial commitments". This Section does not exclude the possibility of dissolving the Council if it is considered a hindrance to the objectives of the MFRP.

   2. Approval & Implementation: National Treasury finalised the mandatory Financial Recovery Plan (MFRP), which was approved by the Free State MEC for Finance in August 2023 and began implementation in October 2023. This delay was contrary to the High Court order that the plan already in existence was to be implemented.

   3. 2025/2026 Budget Concerns: In June 2025, the Mafube Council unlawfully approved the 2025/2026 budget despite objections that it was unfunded and non-compliant with the Municipal Finance Management Act (MFMA)This suggests ongoing failures in the MFRP and lack of oversight by the provincial EXCO. 

2. Current Governance & Oversight (2026)

   1. Persistent Crisis: By mid-January 2026, residents faced severe service disruptions, and continuing sewerage pollution of water sources. MLM suspended the construction of an emergency sewerage overflow pond projects due to non-payment.

   2. Shift to Section 154: While the Section 139(5) intervention is mandatory, recent reports from January 2026 indicate that Mr Saki Mokoena, the CoGTA MEC, unilaterally decided that providing assistance to MLM in terms of Section 154 would be more appropriate. This section provides for more general discretionary provincial support intended for capacity building. According to the MEC, this obviates the need for appointing an Administrator at MLM. However, in the view of MBF this is contrary to the Court order. Opposition parties have also criticised this limited support as failing to prevent administrative collapse.

3. Key Issues of concern

   1. Financial Distress: The municipality continues to struggle with high debt, including significant arrears to Eskom and the South African Revenue Service (SARS).

   2. Contractual Disputes: A long-standing dispute exists with the entity managing electricity services. In spite of recognition that electricity provision remains the only municipal function that operates efficiently and profitably, MLM maintains its denunciation of the RFS electricity management and supply agreement.

   3. Bylaw Absence: As of late 2025, the municipality still lacked essential local bylaws, leading to further legal challenges from resident forums regarding the enforcement of standards and revenue collection.

   4. Communication: The municipal management continue to neglect its obligation to communicate with the community and respond when requested.

   5. Political Infighting: Continues unabated while the mayor ignores direct instructions from the MEC

   6. A Trust Deficit: is growing within the community which apparently the municipal management disregard without recognising the likely consequences

MBF invite residents, business owners and ratepayers to visit our offices at 18A Kerk Street, Frankfort on Mondays to Thursdays from 08h30 to 16h00 and Fridays 08h30 to 12h00. Call or send a WhatsApp message to Marina at 079 145 4295. Visit our website www.mafubebf.org and follow us on Facebook.