National Treasury’s intervention affirms DA’s warnings over Merafong’s financial crisis

Issued by Cllr Carlos Rebelo – DA Merafong Mayoral Candidate
10 Jul 2026 in Press Statements

The Democratic Alliance (DA) in the Merafong City Local Municipality notes National Treasury’s decision to temporarily withhold equitable share grants for this quarter from municipalities (such as Merafong) that have persistently failed to comply with the law. This decision should concern every resident of Merafong, as suspending these grants will have a severe effect on service delivery.

Just over a month ago, during the Special Council Meeting held on 27 May 2026, we raised our opposition to the 2026/2027 budget because it is unfunded and based on unrealistic revenue projections. We warned that approving a budget built on idealism rather than realistic revenue projections would only deepen the municipality’s financial crisis and place further strain on already failing service delivery.

Merafong knew the risks, yet failed to implement the corrective measures before Treasury intervened. Municipalities like Merafong cannot adopt unfunded budgets and fail to address unauthorised, irregular, fruitless and wasteful expenditure.

We call for Merafong to submit a corrective plan, including funded budgets, workable payment arrangements with creditors, investigations into unlawful expenditure and action against those responsible. Funds should not be released on the strength of another Council resolution or political assurance. Merafong must provide documented proof that corrective steps have been taken.

Register to vote DA on 4 November 2026, so that Merafong can get a government that will fight for a financially sustainable municipality that puts residents first.