The Democratic Alliance (DA) will write to Provincial Government to intervene after the Sundays River Valley Municipality passed an unfunded 2026/27 budget.
This means they have planned to spend money they don’t have, which is not just irresponsible, it is unlawful in terms of the Municipal Finance Management Act (MFMA).
The MFMA is clear that a municipal budget must be funded from realistically anticipated revenue, cash-backed reserves, and lawful borrowing for capital projects.
A budget based on unrealistic assumptions, overestimated revenue, or inadequate cash backing does not comply with the law and places the municipality, its residents, and its creditors at risk.
Even more concerning is that the budget was approved despite the municipality’s failure to comply with its own funding plan.
The DA voted against this budget. But despite it not meeting legal requirements, the ANC used its majority to pass it.
We will now write to the MEC for Cooperative Governance and Traditional Affairs (COGTA), Zolile Williams, as well as National Treasury, requesting their intervention.
The current situation is the result of years of poor financial management, inadequate revenue collection, insufficient cost containment measures, and a failure to implement meaningful reforms that would place the municipality on a sustainable financial footing.
Residents are experiencing the consequences through deteriorating infrastructure, unreliable service delivery, and growing financial pressure on the municipality.
Rather than approving an unlawful unfunded budget simply to meet a deadline, the DA believes the following urgent steps must be taken:
- The Mayor and Municipal Administration must immediately revise and re-table a fully funded budget.
- A comprehensive review of all revenue assumptions must be undertaken.
- Non-essential expenditure must be identified and reduced
- A detailed financial recovery and cash-flow management plan must be developed and presented to Council.
- Revenue collection strategies must be strengthened while ensuring that indigent households continue to receive appropriate support.
- The municipality must engage openly with residents, businesses, farmers, and stakeholders regarding the financial challenges facing the municipality and the corrective measures required.
- Provincial Treasury and the relevant provincial departments should provide technical support to assist the municipality in developing a sustainable and legally compliant budget.
Residents deserve a municipality that is financially stable, capable of delivering services, and accountable for every rand spent.
The DA will continue to fight for sound financial management, responsible governance, and service delivery to get Sundays River Valley working.