Endumeni Municipality this afternoon failed to meet the June 30 deadline to adopt its 2026/27 budget, forcing Mayor Mcebo Mkhize to invoke Section 55 of the Municipal Finance Management Act.

The budget was defeated in a 7-6 vote, with ANC and DA councillors voting against the proposal and IFP councillors supporting it.

Speaking to the Courier after the meeting, Mayor Mkhize said he was now legally obliged to notify the provincial executive and National Treasury that the municipality had failed to adopt its budget.

“I am doing this immediately to ensure my job is done. I must inform the provincial executive and the National Treasury that the budget has not been adopted,” he said.

Municipality faces spending restrictions

Until a budget is approved, the municipality will be limited to spending on essential operational services such as water, electricity, sanitation and employee salaries.

“If the impasse continues, the provincial government may intervene in terms of the Constitution. Such intervention could ultimately result in the council being dissolved, the municipality being placed under administration and a temporary budget being imposed,” Mayor Mkhize said.

ANC and DA councillors said they rejected the budget because they believed it was unfunded and contained inconsistencies. They also raised concerns over poor revenue collection, service delivery challenges and Endumeni’s Eskom debt, which has climbed to about R500 million.

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