Midrand: Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa has delivered a stark warning on the state of local government, saying while progress has been made in many areas, a number of municipalities still battle poor financial management and eroding public trust. Speaking at the Local Government Indaba in Midrand on Thursday, Hlabisa said too many municipalities leave citizens ‘with a sense of despair, where almost everything is upside down’, highlighting widespread governance failures.

According to South African Government News Agency, Hlabisa cautioned that the culture of ‘no accountability, lack of transparency, political interference and no consequence management’ is crippling service delivery – particularly in underperforming municipalities – and insisted this must come to an end. Despite the bleak assessment, the Minister pointed to municipalities that are thriving, adopting funded budgets consistently, using grants effectively, delivering services, and earning clean audits.

Hlabisa noted, ‘There are municipalities that render services at an above-satisfactory level and give clean accountability to the Auditor-General,’ describing them as examples to follow. He outlined key reforms needed to restore confidence, including professionalising local government, strengthening ethical leadership, ensuring inclusive public participation, and driving accountability at every level.

Emphasizing the necessity for all municipalities to function effectively, Hlabisa underscored the economic importance of metros, which house 62% of South Africa’s population and control the largest budgets. He warned that ‘if they are not functional, our country’s economy cannot grow.’ He also highlighted ongoing reforms, such as the proposed Coalitions Bill and the review of the White Paper on Local Government, both aimed at stabilising councils and reconfiguring municipal structures.

Looking ahead, Hlabisa presented his vision for municipalities that are ethical, capable, climate-resilient, transparent, and centred on community needs. He urged delegates to treat the Indaba as ‘a golden opportunity to confront challenges affecting our communities where they live’ and to emerge with actionable resolutions for rebuilding effective, accountable, developmental municipalities. The two-day Indaba continues at the Gallagher Convention Centre.