Matlosana Municipality in South Africa follows financial recovery plan — Daily Maverick
Matlosana Municipality in South Africa’s North West province, home to about 430,000 people, is operating under a mandatory financial recovery plan after years of problems with governance, debt and the delivery of basic services. It includes, among other places, Klerksdorp, Orkney, Stilfontein, Kanana, Khuma and Jouberton. As Daily Maverick reports, the decline of the local economy after mine closures compounded the consequences of poor municipal governance.
Residents of Khuma complain about dirt roads being flooded during heavy rains. According to them, drainage pipes have been lying along the roads for two years and have still not been installed, although the project is listed as completed in the municipality’s 2024/25 annual report. In Kanana, residents reported a malfunctioning pumping station and leaks of untreated sewage flowing into the Schoonspruit River, a tributary of the Vaal.
Water losses and debt
South Africa’s Auditor-General found that Matlosana spent 85% of its allocated budget but achieved only 58% of its targets for basic service delivery and infrastructure development. Of a budget of 295 million rand, 156 million rand was allocated to repairs and maintenance — less than 3% of the value of infrastructure, compared with the National Treasury’s minimum recommended level of 8%.
Water losses in the municipality amounted to 57% in the 2024/25 financial year, while electricity losses stood at 44%. Matlosana owes 2.8 billion rand to Midvaal Water Company. Despite the write-off of 380 million rand under a debt-relief programme for Eskom debt, its debt to the energy company still stood at 1.92 billion rand at the beginning of August.
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The National Treasury temporarily withheld payment of the 299 million rand July 2026 transfer. One reason was the lack of a proper investigation into cases of unauthorized, irregular, fruitless and wasteful expenditure, which had reached 10.8 billion rand by the end of 2024/25. According to the publication, the municipality pays its creditors in around 600 days — 20 times longer than legislation provides for.
Political instability and investigations
The Auditor-General issued Matlosana with four notices of material irregularities involving financial losses, harm to the public and systematic non-compliance. Cases concerning possible fraud, corruption and procurement violations were referred to the Office of the Public Protector and the Hawks unit on April 28, 2026.
Former Chief Financial Officer Mercy Phetla was dismissed in January 2026 following a disciplinary hearing. She denied all allegations. A disciplinary investigation in December 2025 found her guilty of actions that, according to the wording of the finding, were calculated to deceive the municipality. Phetla challenged the disciplinary measures in court, but her application and subsequent appeal were dismissed; the Commission for Conciliation, Mediation and Arbitration also found the dismissal procedurally and substantively fair.
The municipality has been under administrative intervention intermittently since 2013. Provincial authorities extended the mandate of their representative, who oversees the implementation of the financial recovery plan.
