Western Cape Government welcomes progress in Beaufort West and Kannaland Financial Recovery Plans

MEDIA RELEASE by Western Cape Minister of Finance, Deidré Baartman, and Minster of Local Government, Environmental Affairs and Development Planning, Anton Bredell.

The Beaufort West Municipality will officially enter into Phase 2 of its Financial Recovery Plan (FRP). The Oversight Committee, appointed by the Western Cape Government (WCG) to monitor and evaluate the implementation of the FRP has determined that sufficient progress has been made to move the municipality into the next phase. 

The FRP for Beaufort West, approved in March 2022, was designed to address longstanding governance and financial challenges. Over the past 18 months, the municipality has demonstrated meaningful progress, which includes: 

• Achieving a sustained revenue collection rate of 85% by the end of the 2023/24 financial year; 
• Meeting the conditions for the Eskom Municipal Debt Relief programme, enabling critical debt reduction measures; and 
• Achieving a capital expenditure ratio of 87% and cash-backing for grants. 

Deidré Baartman, Western Cape Minister of Finance, said, “This progress marks a crucial step towards restoring good governance, achieving financial stability, and improving service delivery for the residents of Beaufort West. The Western Cape Government commends the municipal leadership and the administration on the progress made so far.”

The next phase of the FRP will include updated targets and activities, which will be aligned with the Section 154 Support Plan to ensure continued progress in governance, financial stability, and service delivery. The revised targets will undergo further review by the Oversight Committee to maintain accountability and cooperation and support sustained recovery efforts.

Despite the progress, challenges remain, particularly with regard to resolving systemic billing issues. However, the provincial government is pleased by the municipality and council’s continued cooperation with National Treasury, Provincial Treasury, the Department of Local Government, and South African Local Government Association (SALGA) to establish a foundation for long-term financial health. As Beaufort West enters phase two of its recovery plan, the focus will shift to enhanced governance, institutional reform, and sustained service delivery improvements.

Minister of Local Government, Anton Bredell, said the municipality deserves recognition for the work up to date to be in a position for the next phase of recovery. “Turning a municipality around is hard and often very frustrating work. I want to congratulate the team of professionals, with support from their political office bearers, who have been committed towards this goal of seeing a healthy and sustainable municipality that can provide quality services to its residents.”

Minister Bredell said all local governments need political stability, ethical leadership, and qualified professional officials to function optimally for the residents they serve.

The WCG also welcomes Kannaland Municipality accepting a Section 154 Support Plan and passing a resolution to support a Financial Recovery Plan for the municipality. These developments are a positive step towards stabilising the financial management and service delivery challenges that have been affecting the local government. The WCG will commit to provide support to Kannaland Municipality as it navigates these challenges towards achieving financial stability and resilience.

The Provincial Treasury and the Department of Local Government will continue to provide dedicated support to municipalities across the province. We are committed to ensuring that good governance and financial sustainability are realised across the Western Cape’s local governments. These efforts underscore the WCG’s vision of resilience and accountability for the benefit of all residents of the province.