Cooperative Governance Minister, Velenkosini Hlabisa, has highlighted the lack of a revenue base for collection as one of the factors contributing to the poor performance of some municipalities.

This follows a report by the auditor general, which revealed that only 41 of the country’s 257 municipalities achieved clean audits for the 2024-2025 financial year.

Hlabisa says the well-performing municipalities are overshadowed by the majority of struggling municipalities.

He was speaking at a high-level dialogue in Midrand, where political parties have convened as part of the ongoing review of the 1998 White Paper on Local Government.

“Some of our municipalities are not viable as they have no revenue base for collection. As a result, they are classified as distressed, and some are bankrupt. Sometimes they are unable to pay salaries.”

Hlabisa says a bold approach should be considered to make municipalities functional and fit for purpose. He says this will include a review of the remuneration of councillors.

Hlabisa believes that if councillors are subjected to low salaries, they will continue to focus on other jobs and neglect their municipal responsibilities.

“We need to make a bold and new approach on structuring, funding and remuneration of councillors because if our councillors are paid peanuts, they will spend most of their time on other jobs and only pay lip service as councillors. The matter of remuneration of councillors should be a matter that must be engaged.”

1998 White Paper on Local Government review – COGTA Minister Velenkosini Hlabisa’s address: