Endumeni Municipality risks triggering intervention after missing budget deadline
At the time, Treasury cautioned that failure to comply could trigger intervention in terms of Section 139(4) of the Constitution, which allows for the dissolution of a municipal council and the imposition of a budget by the provincial executive.
Endumeni Municipality is facing imminent provincial intervention after councillors again failed to adopt the 2026/2027 budget, missing a final deadline set by the KwaZulu-Natal Treasury.
During a council sitting on Monday, the budget was rejected in a narrow seven-six vote, with DA and ANC councillors voting against it, while the IFP supported its adoption.
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The latest failure comes despite a clear ultimatum issued by Treasury last week, warning that the municipality could face dissolution if it did not pass a credible, funded budget by July 13.
At the time, Treasury cautioned that failure to comply could trigger intervention in terms of Section 139(4) of the Constitution, which allows for the dissolution of a municipal council and the imposition of a budget by the provincial executive.
Monday’s outcome now places Endumeni on the brink of that intervention.
According to reports by Northern Natal News, opposition parties rejected the budget on the basis that it remained unfunded and riddled with inconsistencies.
Councillors argued that no meaningful changes had been made since the initial budget was tabled in June and raised concerns about the municipality’s deepening financial crisis.
Central to their objections is Endumeni’s escalating Eskom debt, which reportedly exceeds R500 million, a figure said to be higher than the municipality’s projected revenue.
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They further criticised the budget for failing to address deteriorating infrastructure and ongoing service delivery challenges.
This is not the first time the budget has been rejected. Previous attempts to pass it in June and before the statutory June 30 deadline also failed, highlighting ongoing political deadlock within council.
The continued failure to adopt a budget leaves the municipality in a precarious position, as it cannot legally implement new spending plans or roll out key projects without an approved budget.
In similar situations, municipalities are typically limited to essential expenditure such as salaries and basic services, while development and maintenance projects stall.
With the deadline now missed, the provincial government is expected to step in.
Intervention could include placing the municipality under administration, appointing an administrator to take control of financial decisions, or ultimately dissolving the council and calling fresh elections.
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Treasury said they could not comment on the matter until after the provincial Cabinet meeting on Wednesday.
