Eastern Cape Launches Rescue Plan For Six Struggling Municipalities

The Eastern Cape Provincial Government has launched urgent interventions in six municipalities after the National Treasury withheld millions in grant funding over financial compliance failures.

Premier Lubabalo Oscar Mabuyane convened top political and administrative leaders on Monday for an “Accountability Day Session” to stop service delivery collapse in Buffalo City Metro, Nelson Mandela Bay, Makana, Sundays River Valley, Inxuba Yethemba and Port St Johns.

National Treasury withheld the July 2026/27 Local Government Equitable Share last month in terms of Section 216(2) of the Constitution.

Mabuyane warned the move could cripple already stretched municipal budgets and hit residents hardest.
“We cannot allow a situation where our people bear the consequences… through disruptions in basic service delivery,” he said.

The province agreed to:
– Fast-track compliance with National Treasury requirements starting immediately
– Deploy technical support via Provincial Treasury and COGTA
– Quarterly oversight sessions to monitor turn-around plans

All affected municipalities tabled recovery plans. Some are already implementing them.

There is hope for two. National Treasury is “reassessing submissions” from Buffalo City and Port St Johns, with indications they may get funds released soon.

The Premier cited progress from previous Section 139 interventions, highlighting Amathole District and Enoch Mgijima for improved governance and budgets. Several EC municipalities also recorded better audit outcomes in 2025/26.

“We remain unwavering in our commitment to building capable, ethical and developmental municipalities,” Mabuyane said.

Residents in the affected areas are urged to monitor council updates as the province works with the National Treasury to restore funding and protect water, electricity, sanitation and road services.