-The DA will request the MEC for COGHSTA to amend Modimolle-Mookgophong’s Financial Recovery Plan in line with Section 141(1) of the MFMA
-The financial governance of the municipality has collapsed and compliance with the Financial Recovery Plan is unsatisfactory
-Financial regression of the municipality will have disastrous consequences on the region
The DA in Limpopo will write to the MEC for COGHSTA, Basikopo Makamu, to amend the failing Financial Recovery Plan of the Modimolle-Mookgophong municipality in terms of Section 144(1) of the Municipal Finance Management Act.
It is evident that financial governance has collapsed:
- Council adopted an unfunded budget for the current financial year
- The current financial recovery plan has not yielded results
- Over reliance and excessive costs on consultants for VAT and the annual financial statements
- Resolutions to write off more than R1 billion in Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFW) since 30 June 2024
- Mounting debt of R1.6 billion and unrealistic payment agreements
- Current debt collection rate is at 52% as at May 2026
- Limited or no evidence of consequence management
The political will to improve the financial outlook of the municipality is completely lacking; as at 28 February 2026 UIFW increased by 41% over the last 6 months to more than R1.2 billion.
The unsustainable debt payments are crippling service delivery:
- Eskom- R4.5 million weekly
- Magalies Water- R2.5 million monthly
- ABSA- R700k monthly
- Auditor General – R500k monthly
- Cigicell – monthly withholds 40% of all prepaid revenue
The municipality is incapable to implement the current financial plan due to lack of income and funding.
Modimolle-Mookgophong is a central commercial hub with agriculture and tourism as its main economic drivers; government services further account for a substantial portion of employment and economic activity.
To allow further regression of the municipality will have disastrous consequences for the region.
We call on MEC Makamu to urgently revise the financial recovery plan to enable Modimolle-Mookgophong to not only service its creditors, but to focus on failing service delivery and dilapidated infrastructure maintenance to prevent further distress.