Hlabisa Warns of Failing Municipalities, Calls for Urgent Local Government Reform

Cooperative Governance and Traditional Affairs (CoGTA) Minister Velenkosini Hlabisa has issued a sobering warning about the state of South Africa’s local government system, saying that while there are success stories, far too many municipalities remain plagued by weak financial management, poor governance, and eroding public trust.

Speaking at the Local Government Indaba held in Midrand on Thursday, Hlabisa said citizens in underperforming municipalities are often left “with a sense of despair, where almost everything is upside down.” He described the ongoing failures as a direct consequence of political interference, lack of accountability, and ineffective consequence management, all of which undermine service delivery.

Widespread Failures and Bright Spots

The Minister highlighted that many municipalities are trapped in a culture of mismanagement and neglect, with service delivery collapsing under the weight of corruption and misused funds. He warned that communities are losing faith in local government, with devastating consequences for development.

However, he also praised municipalities that are consistently adopting funded budgets, using grants effectively, providing reliable services, and receiving clean audits from the Auditor-General. These success stories, he said, prove that accountability and good governance are achievable.

“There are municipalities that render services at an above-satisfactory level and give clean accountability to the Auditor-General,” Hlabisa said, urging struggling councils to learn from these examples.

Key Reforms to Rebuild Trust

Hlabisa outlined a reform agenda to restore confidence in municipalities and rebuild public trust. The proposals focus on:

• Professionalising local government: Ensuring qualified, ethical staff are appointed and retained.

• Strengthening ethical leadership: Promoting leaders who prioritise community needs over political interests.

• Driving accountability: Enforcing consequence management to end impunity for poor performance.

• Inclusive public participation: Making community voices central to decision-making and oversight.

“Every municipality must work,” Hlabisa stressed, adding that without functional councils, the country’s democratic and developmental goals cannot be achieved.

Economic Importance of Metros

The Minister emphasised the central role of South Africa’s metros, which account for 62% of the country’s population and manage the largest share of municipal budgets. He cautioned that the collapse of metropolitan governance would have dire consequences for the entire economy.

“If they are not functional, our country’s economy cannot grow,” he warned.

Legislative and Policy Reforms

Hlabisa also pointed to ongoing reforms intended to stabilise and reconfigure municipalities. These include the proposed Coalitions Bill, which seeks to regulate fragile coalition governments in hung councils, and the review of the White Paper on Local Government, a long-term framework for improving municipal governance.

These reforms, he said, are essential to stabilising councils, preventing political deadlock, and restoring functional governance structures.

Vision for Local Government

Looking ahead, Hlabisa called for municipalities to embody ethical governance, climate resilience, community-centred planning, and transparency. He said the Local Government Indaba should be used as “a golden opportunity to confront challenges affecting our communities where they live” and to produce actionable resolutions for rebuilding effective municipalities.

The Minister concluded with a call for urgency:

“We must emerge from this Indaba with a clear plan to ensure municipalities are not only functional but also capable, accountable, and developmental.”

The Road Ahead

The two-day Indaba, hosted at the Gallagher Convention Centre in Midrand, brings together government leaders, business stakeholders, and community representatives. Discussions are expected to result in concrete strategies for tackling corruption, improving financial management, and strengthening service delivery at the local government level.

For many citizens, the outcomes of this Indaba could mark the beginning of long-overdue reforms to restore the promise of democratic, people-driven municipalities.