Dr Ruth District Municipality exits financial recovery

The Dr Ruth Segomotsi Mompati District Municipality has been removed from a financial recovery plan after stabilising its financial position, provincial treasury officials have confirmed.

The municipality had for several years been classified as dysfunctional, operating on an unfunded budget and, at times, having its equitable share withheld by the National Treasury.

It was also placed under Section 139(1) of the Constitution, which allows provincial intervention when a municipality fails to fulfil its executive obligations.

According to the provincial treasury, the municipality is now operating on a funded budget and has regained access to its capital grants, prompting its removal from financial recovery.

Municipal Manager Ronnie Jonas attributed the improvement to what he described as increased financial discipline and improved grant management.

“We have done well in terms of the Municipal Infrastructure Grant. For the first six months, the municipality has spent 78 percent of the allocated amount,” Jonas said.

He added that expenditure under the Water Services Infrastructure Grant stood at 81 percent for the same period, while spending on the Regional Bulk Infrastructure Grant reached 41 percent.

Executive Mayor Motseokae Maje said the developments were in line with objectives set when the current administration assumed office.

“We are proud that we have made progress in stabilising the municipality financially and improving our delivery capacity.

“Over the past two years, we have improved our ability to utilise conditional grants, resulting in additional funding being allocated during the financial year,” he said.

The municipality has also reported an improvement in its audit outcomes for the 2025/2026 financial year, although final audit results are yet to be released by the Auditor-General.