The Democratic Alliance (DA) has rejected the ANC-led Walter Sisulu Local Municipality’s (WSLM) 2025/26 draft budget, tabled in Council yesterday, citing it as unfunded and immoral including unjustifiable rate hikes.
Since WSLM’s amalgamation in 2016, the municipality has consistently adopted unfunded budgets, largely due to substantial Eskom debt of R740 million. Despite being part of the Eskom debt relief program, the municipality remains unable to settle its current account, perpetuating this financial challenge.
In the 2024/2025 financial, WSLM adopted an unfunded budget along with a new valuation roll, which resulted in property value increases ranging from 70% to 400% and massive property rates hikes.
Service delivery has all but collapsed, yet this administration proposes further tariff hikes on under-delivered services.
The draft budget includes a 12.7% electricity tariff increase despite rampant illegal connections, meter tampering and unmetered premises. A 4.4% property rates hike is also proposed, following massive increases last year due to the new valuation roll. Furthermore, a 4.4% refuse removal increase is suggested amidst regular service disruptions, with municipal trucks breaking down.
Of further great concern is the municipality’s attempt to push through a business licensing bylaw via public participation. This move would devastate hawkers, spaza shops, and family-owned businesses. These businesses are the backbone of the local economy. In an area already struggling with job creation, this bylaw would be nothing short of economic sabotage.
We have now escalated the matter to National DA Deputy Spokesperson for Cooperative Governance and Traditional Affairs (CoGTA), Marina van Zyl MP, to drive the matter of the municipality’s continuous adoption of unfunded budgets in National Parliament.
Furthermore, we will write to the Walter Sisulu Mayor and Municipal Manager demanding the following:
- That the proposed business licensing scheme be scrapped immediately.
- All unjustified tariff hikes be reversed.
- Real consequence management be implemented for those responsible for financial mismanagement.
The DA condemns this draft budget as reckless, immoral, and anti-poor. It is unacceptable to burden ratepayers for the municipality’s mismanagement. The Auditor-General’s repeated qualified audit opinions prove they cannot be trusted with public funds.
Residents deserve reliable services, not broken promises and escalating bills. The DA will keep fighting for a municipality that serves the people, not its own failures.