Speaking during a high-level dialogue in Midrand, Johannesburg, on Monday, Hlabisa responded to a recent report by the Auditor-General that found only 41 of the country's 257 municipalities achieved clean audits in the 2024–2025 financial year.

The event formed part of the national review of the 1998 White Paper on Local Government, where political parties gathered to discuss the evolving challenges in municipal governance.

Hlabisa said well-performing municipalities are often eclipsed by a significant number of struggling ones, many of which lack the basic resources required to operate efficiently.

“A number of municipalities constantly fail to spend municipal infrastructure and other grant allocations. Some of our municipalities are not viable as they have no revenue base for collection,” said Hlabisa.

“As a result, they are classified as distressed and some are bankrupted. Sometimes they are unable to pay salaries.”

The Minister’s comments echo growing concerns about the financial sustainability of local government structures in SA. Several municipalities, particularly in rural and underdeveloped regions, face serious revenue shortfalls due to high unemployment, low economic activity, and ineffective billing systems.

--SABC/ChannelAfrica--