MISA demands accountability as Treasury withholds funds from 69 municipalities
9 July 2026
National Treasury’s decision to withhold funding from 69 municipalities punishes vulnerable communities and workers while no steps are taken to address mismanagement and corruption that has crippled local government.
MISA, the Motor Industry Staff Association representing more than 79 000 members in the retail motor industry, says It is time that those responsible are held accountable. “Justice must be seen to be done. The core frustration in South Africa stems from a collision between the unfulfilled political promises and systemic socio-economic collapse. At its heart lies a cycle of staggering unemployment, endemic public sector corruption and failing basic services like electricity, water and infrastructure. Protecting workers means protecting the communities they live in and that requires urgent reform at municipal level,” says Martlé Keyter, MISA’s Chief Executive Officer: Operations.
Below is a breakdown of some of the debts owed:
- Eskom debt: Municipalities collectively owe R110 billion.
- Water board debt: At least R15.7 billion unpaid.
- Irregular expenditure: R145 billion.
- Unauthorised expenditure: at least R118 billion, much of it unfunded budgets.
According to Keyter municipalities exist to deliver essential services that directly affect the daily lives of South Africans. “When funding is withheld due to mismanagement, it is ordinary people who suffer. Workers face unsafe living conditions and unreliable transport while residents are left vulnerable, yet corrupt officials escape accountability.”
Reports from the Auditor General and parliamentary oversight committees have repeatedly highlighted material irregularities, wasteful expenditure and weak internal controls in municipalities, but consequence management remains absent.
“Treasury’s decision is a wake up call. Officials who have betrayed the public trust through corruption and incompetence must be investigated and prosecuted. The protection of workers and residents must come first. South Africa cannot afford municipalities that fail their people,” says Keyter.
Issued by Sonja Carstens, Manager of MISA’s Media & Communication Department. For press enquiries contact, Phakamile Hlubi-Majola, Spokesperson of MISA, on 083 367 6417.
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