Premier Oscar Mabuyane says political differences in coalition-run municipalities are hampering efforts to address financial mismanagement in the Eastern Cape. He spoke after a provincial accountability session on National Treasury’s decision to withhold July 2026 equitable share payments from six non-compliant municipalities.
Mabuyane addressed the media in KuGompo City on 14 July 2026. He welcomed the Treasury move but warned that withholding funds would strain cashflow in already struggling municipalities.
The premier noted that coalition infighting has affected council operations, including meeting deadlines and convening on time. He said the province does not plan to place any municipality under administration.
COGTA MEC Zolile Williams highlighted that municipalities rely on their own revenue collection. He pointed to large outstanding debts from residents, government departments and businesses, which could worsen service delivery challenges.
Buffalo City Metro and Port St Johns municipalities have submitted action plans to National Treasury and are expected to receive their allocations soon. Disciplinary action has been taken against 100 employees in one of the affected municipalities.