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Withheld treasury funds one of talking points at council meeting

The equitable share from Treasury contributes approximately R795 million to the municipality’s annual budget, almost 30% of its total revenue.

Concerns regarding UIFWE (unauthorised, irregular, fruitless and wasteful expenditure) at the JB Marks Municipality were among the major discussion points at the final ordinary council meeting for the year.

The meeting took place this past Tuesday, August 25, at the Dan Tloome Chambers in Potchefstroom. Both the Executive Mayor, Clr. Gaba Thithiba Ka Qhele, and the Municipal Manager, Kgomotso Kumbe, agreed that the municipality cannot afford to have its equitable share transfers withheld for the coming months.

The only way National Treasury can release the funds would be if the JB Marks Municipality meets the required compliance conditions.

Early in July this year, the JB Marks Local Municipality was named as one of 12 North West municipalities whose equitable share transfers had been temporarily withheld following non-compliance with the Municipal Finance Management Act.

Debt to Eskom, nearing R 800 million, has also been a major concern for the municipality, with illegal connections adding to a lack of service revenue.

According to the Auditor-General’s 2024/25 report, municipalities nationwide have incurred R24.12 billion in fruitless and wasteful expenditure since 2021/22, while irregular expenditure over the same period amounted to R145.21 billion.

When the news broke in July, the DA stated that the equitable share contributes approximately R795 million to the municipality’s annual budget, almost 30% of its total revenue.

FF Plus councillor Thys Rossouw stated during the meeting that it would be unthinkable if JB Marks did not receive the equitable share and that this would have a massive impact on the municipality’s ability to function successfully in terms of service delivery.

In 2023, it was reported that National Treasury had withheld R60 million from the JB Marks Municipality after the municipality failed to allocate the funds it had received.

Land occupation under the spotlight

Other topics discussed during the council meeting related to land rights and land usage, focusing on Ferdinand Postma Park in the Vyfhoek area, as well as other land claim matters.

Currently, an Environmental Impact Assessment would need to be facilitated and approved by the MEC. It is also crucial to note that the Constitution is the supreme law and that the Bill of Rights must be followed. The DA also stressed that Basic services such as water and electricity are needed before land can be occupied.

For some ANC councillors, the delay in land occupation was unnecessary, while others in council emphasised that the correct procedures needed to be followed.

DA ward councillor Heinricha Hodgson raised the question of why the budget for upgrades to the President Pretorius Museum had been amended from R300 000 to only R15 000. A definitive answer could not be given.

There was general consensus that investment must be made in grave sites in Ventersdorp to provide dignified burials.

A special council meeting was also arranged to discuss important matters further in relation to the equitable share transfers.

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wouterpienaar01

I am the editor of the Potchefstroom Herald since January 2026. I have a keen interest for sport and local community news. I have more than a decade of experience covering various beats. Journalism is a lifestyle.

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