NORTH WEST COGHSTA’S 2025/26 BUDGET VOTE UNPACKED

"RENEWING THE SOCIAL CONTRACT"

When MEC Gaoage Oageng Molapisi delivered his 2025/26 Budget Vote for Cooperative Governance, Human Settlements and Traditional Affairs at the North West Provincial Legislature on 23 rd July 2025, he grounded his message in history and responsibility. He reminded the House that this year marks the 70 th Anniversary of the Freedom Charter - a living document whose declaration that “there shall be houses, security and comfort” remains at the heart of CoGHSTA’s mandate.

“This anniversary is not only commemorative but a call to action,” he said, emphasising that the work of his department goes beyond administration and budgeting - it is about building communities where dignity, security and opportunity are a lived reality. Anchored in the Medium-Term Development Plan (MTDP) and aligned to the national priorities set out by President Cyril Ramaphosa in the 2025 State of the Nation Address (SoNA), the budget reflects a renewed commitment to three (3) overarching goals: 1. to drive inclusive economic growth, 2. to reduce poverty and the cost of living , and 3. to build a capable, ethical and developmental state.

Milestones in Building Capacity for Better Governance

MEC Molapisi announced that the department has achieved a major milestone and has taken bold steps to modernise its internal systems and strengthen capacity. For the first time since 2019, CoGTA now has a new organisational structure, endorsed by the Minister of Public Service and Administration. This structure creates a modern, fit-for-purpose department aligned to both governance and cultural priorities.

To support municipalities more effectively, the Community Development Workers Programme has been repositioned under Development and Planning - and a new division under Traditional Institutional Management now manages indigenous knowledge and initiation schools, reinforcing cultural preservation and public safety.

MEC Molapisi stated that recruitment is also improving institutional capacity. Of 27 advertised posts, 13 have already been filled, with the rest at advanced stages of appointment. 44 Engineering graduates have been placed in municipalities on a candidacy programme in partnership with merSETA, directly boosting technical capacity in critical areas such as water and infrastructure.

Professionalisation of the public service is being advanced through competency-based recruitment, performance management, ethics frameworks, workforce planning,

and partnerships with professional bodies. These programmes are integrated across the employee life cycle to strengthen professionalism and improve service delivery.

Building on seven consecutive unqualified audits, the MEC announced that the target for 2025/26 is to achieve an unqualified opinion with no findings. To this end, stronger internal controls, post-audit action plans, and rigorous oversight systems are being put in place.

Strengthening Local Goverment

CoGTA is focused on building municipalities that are responsive and capable. In partnership with SALGA and the Provincial Treasury, a Municipal Roadshow Programme has been completed using the Municipal Performance Assessment Tool (MPAT).

The programme assesses municipalities across six pillars: Putting People First Service Delivery

3. Governance

4. Financial Management

5. Institutional Capacity

6. Local Economic Development

The MEC said that the roadshows revealed both achievements and gaps. Skills audits across 22 municipalities showed mismatches between qualifications and positions, prompting a call for immediate action plans to close the gaps. Service delivery challenges, particularly ageing water and sanitation infrastructure, were also identified - and municipalities are now expected to use every available grant to address these pressing needs. The MEC reinforced that accountability is non-negotiable. Non-compliance with regulations on senior manager appointments remains a concern, with the department invoking Section 54A of the Municipal Systems Act to nullify irregular appointments in JB Marks and Ditsobotla municipalities. Courts are also being asked to impose financial costs on councillors responsible for unlawful decisions.

MEC Molapisi announced that quarterly State of Local Government briefings will be held to keep the public informed of municipal performance, highlight audit improvement strategies, and report on human settlements projects. He stated that this new measure is aimed at enhancing transparency, strengthening oversight, and restoring public confidence in municipalities.

We remain steadfast in building a prosperous province…unflinching in our commitment to sustainable human settlements, effective local government, and restoring the dignity of traditional leadership.

Stabilising Municipal Finances

The MEC stated that as of June 2025, municipal debt to Eskom stood at R9.3 billion, while overall municipal debt reached R37.1 billion, comprising R28.6 billion owed by households, R2.3 billion by government entities, and R4.2 billion by businesses. Municipalities themselves also owed Magalies Water more than R2.3 billion.

To address this, Premier Lazarus Mokgosi, in collaboration with the Minister of Water and Sanitation, Pemmy Majodina, has brokered payment agreements between Magalies Water and three (3) municipalities: Maquassi Hills, Dr Ruth Segomotsi Mompati and Ngaka Modiri Molema. CoGTA will closely monitor these agreements to ensure compliance and improve cashflow management.

The message from the MEC was clear: municipalities must adopt responsible debt strategies, protect service delivery, and ensure sustainable finances.

Gearing towards the 2026 Local Government Elections

With the current term of councillors nearing its end, preparations for the 2026 Local Government Elections are well underway. The Municipal Demarcation Board (MDB) has completed public consultations on ward boundaries, with final boundaries due to be submitted to the IEC by October 2025.

At the same time, the review of the White Paper on Local Government is advancing.

The process, extended by Minister Velenkosini Hlabisa to allow for further public input, is expected to lead to reforms that will strengthen municipal capacity, governance, and accountability. As the MEC highlighted, these reforms represent more than administrative adjustments - they are a shift towards a more responsive and citizen-centred local government system.

Delivering Water Security

A key achievement highlighted in the budget is Operation Bulela Metsi , which has accelerated the delivery of water and sanitation projects across the province. Completed projects include the Moretele Bulk Water Supply, Greater Taung Bulk Water Supply Scheme, and new boreholes in Lichtenburg.

In 2025/26, amongst others, the following major water projects are underway:

• Moeka water supply (R100 million)

• Klipgat water reticulation (R74 million)

• Tlhabane asbestos pipeline replacement (R127 million)

• Derby water treatment works (R18.6 million)

• Multiple projects in Ngaka Modiri Molema worth over R200 million

• Bulk water supply schemes in Dr Ruth Segomotsi Mompati worth more than R300 million

On 01 st August 2025, the MEC announced that Deputy President Paul Mashatile and Minister Pemmy Majodina

will officially hand over the Moretele South Reservoir Project, part of a R139 million investment benefiting 12 communities.

The MEC added that, to ensure accountability, all municipalities designated as Water Services Authorities will undergo capacity assessments, and where necessary, rights to provide water will be reviewed.

Infrastructure and Clean Cities

Municipalities achieved a 98% expenditure rate of the Municipal Infrastructure Grant (MIG) in 2024/25, with 11 municipalities reaching 100% utilisation. This demonstrates growing capacity to deliver infrastructure effectively. Persistent underperformance in a few municipalities will be addressed through strengthened monitoring and support.

The District Development Model (DDM) is being rolled out with clear legal backing, embedding collaborative planning into performance agreements of senior officials. MEC Molapisi stated that quarterly MUNIMEC meetings now bring together mayors, councillors, and officials to strengthen oversight, improve grant performance, address municipal debt, and tackle non-compliance in senior appointments.

MEC Molapisi stated that the Clean Cities Campaign, launched in April 2025 under the theme “Rata Tikologo ya Gago” (Love Your Environment), is driving visible improvements across towns and villages. Supported by community leaders and municipalities, the campaign is aligning with the national vision for clean, safe and healthy settlements.

Disaster Management and Community Safety

The heavy rains of 2024/25 caused significant damage, prompting classification of the incidents as a national disaster. Only four (4) minicipalities complied with the request to submit business plans for submission to the National Disaster Management Centre. In response, Minister Velenkosini Hlabisa has allocated R50.5 million to affected municipalities: Ratlou, Moretele, JB Marks and City of Matlosana.

Regulation of spaza shops and food outlets has also been strengthened, with over 16 800 registrations recorded. This measure aims to protect public health and enhance compliance.

The MEC emphasised the importance of disaster readiness. Municipalities are urged to maintain stormwater systems and prevent illegal dumping, while the Provincial Disaster Management Centre is shifting focus to proactive disaster risk governance.

Regulation of spaza shops and food outlets has also been strengthened, with over 16 800 registrations recorded. This measure aims to protect public health and enhance compliance.

This Budget Speech reaffirms our unwavering commitment to renewing the social contract - a contract built on trust, accountability, and shared responsibility between government and the people we serve.

Supporting Traditional Leadership

CoGTA continues to provide tangible support to traditional leaders. Vehicles worth R7.3 million are being delivered this year, adding to the fleet purchased in previous years. Traditional leadership records are being digitised by September 2025, and disputes are being resolved more effectively. The MEC stated that the Provincial Initiation Coordinating Committee has successfully closed 18 illegal initiation schools, rescuing over 100 initiates from unsafe conditions. These efforts reflect the department’s commitment to preserving cultural heritage while ensuring safety and dignity.

Human Settlements: Restoring Dignity

The Department of Human Settlements has been allocated R1.847 billion for 2025/26. Of this, 80% will be directed to unblocking stalled housing projects, ensuring beneficiaries receive long-promised homes before new developments begin.

Key deliverables include:

• 3 555 new housing units and 5 403 serviced sites

• 1 133 units in mining towns, restoring dignity to affected communities

• 6 718 title deeds, giving families security of tenure

• 83 houses for military veterans, recognising their sacrifices

• 64 mud houses replaced in rural areas

• Rollout of the asbestos removal programme, starting in JB Marks Municipality

Catalytic projects such as Bokamoso in Bojanala and the N12 Corridor in Dr Kenneth Kaunda will continue, while mega projects including Rustenburg, Marikana and the Matlosana Smart City will unlock thousands of housing opportunities and create jobs.

Partnerships and Inclusivity

The MEC reaffirmed that government cannot deliver alone. Partnerships with contractors, developers, and communities are central to accelerating housing delivery. In some cases, contractors have even donated houses to vulnerable families, reflecting a shared commitment to building stronger communities.

Inclusivity remains a guiding principle. Forty percent of the infrastructure budget is earmarked for women, youth, and people with disabilities, ensuring that human settlements delivery also advances empowerment.

Delivering on the Promise…

The 2025/26 Budget Vote presented by MEC Gaoage Oageng Molapisi reflects a clear commitment to practical delivery and communitycentred progress. Priorities such as modernising CoGHSTA, expanding water infrastructure, strengthening

municipal accountability, and restoring dignity through housing all underscore a results-driven and transparent approach.

Under the leadership of Premier Lazarus Mokgosi, the North West is showing that capable governance and decisive action can transform lives.

As the MEC affirmed: “We remain steadfast in building a prosperous province.”

Guided by the vision of the Freedom Charter and strengthened by practical action, the province is renewing its social contract with citizens - building municipalities that work, human settlements that restore dignity, and a future of stability and opportunity for all.

Renewing the Social Contract

In delivering the 2025/26 Budget Vote MEC Molapisi's message was clear:

• Accountability is non-negotiable - municipalities must comply with the law.

• Water and sanitation are a basic human right - failure to deliver is unacceptable.

• Municipalities must be responsive, ethical and capable - rooted in good governance.

• Traditional leadership deserves tangible support - with digitised records and stronger oversight.

• Housing is about restoring dignity, not just building units - title deeds, unblocked projects, and inclusive delivery are central.

We remain steadfast in building a prosperous province.”