Financial Recovery Plans show varied progress across Beaufort West, Kannaland and Theewaterskloof
The Western Cape Cabinet adopted the latest quarterly progress reports on the implementation of Financial Recovery Plans (FRPs) in Beaufort West, Kannaland, and Theewaterskloof local municipalities.
The reports were tabled in Cabinet in terms of Section 147 of the Municipal Finance Management Act (MFMA) and cover the period between October and December 2025.
Western Cape Minister of Finance, Minister Deidré Baartman, said the reports confirm that structured oversight, regular monitoring and targeted provincial support remain central to stabilising municipalities under financial distress.
“While each municipality faces its own challenges, the reports provide a clear, evidence-based view of where progress is being made and where corrective action is necessary. Cabinet’s consideration of these reports reinforces the Province’s commitment to disciplined financial management, accountability and sustained recovery,” Minister Baartman said.
Beaufort West
- The municipality has been implementing an FRP since March 2022 and is currently in Phase 2 of implementation, the Stabilisation Phase.
- Its progression from Phase 1 to Phase 2 was based on the completion of the majority of activities in the FRP for Phase 1, as well as a consistent improvement in the collection rate and the reliable payment of creditors.
- The municipality has maintained routine payments to creditors, including Eskom, and remains compliant with the conditions of the Eskom Debt Relief Programme. It also had the first third of its debt to Eskom written off.
- The municipality’s audit outcome improved from qualified to unqualified with findings for 2024/25.
- It also saw improvements in cash management and revenue billing controls.
- The main constraints to progressing to Phase 3 of the FRP are management instability in the administration, a lack of further improvement in collections and consequent inability to build liquidity reserves, delayed capital spending and high water losses.
Kannaland
- Kannaland began implementation of their FRP in September 2025 and is still in Phase 1, the Rescue Phase. This is thus its first Section 147 report.
- The Municipality has struggled to fully comply with and report on the FRP and is still unable to fully pay its creditors.
- Further effort is required to address the underlying financial, governance and capacity constraints in the municipality, including payroll audit that must be completed which includes verification and skills audit, and the municipality must enforce strict overtime pre-approval and compliance with thresholds.
- Provincial and national government are providing extensive support to the municipality, including deploying an advisor to assist with improved reporting and funding projects on revenue enhancement and a payroll audit.
Theewaterskloof
- Theewaterskloof began implementation of their FRP in October 2025 and is still in Phase 1. This is thus its first Section 147 report.
- The Municipality is implementing the FRP and reporting progress on all four pillars of the FRP.
- While substantial financial challenges remain, the municipality achieved a significant milestone in March 2026 when they signed a repayment agreement with Eskom to address the debt owed to their largest bulk supplier.
- Cash balances improved during the quarter, creditor management showed progress, and revenue collection rates increased, although still below target.
Western Cape Minister of Local Government, Environmental Affairs and Development Planning, Anton Bredell, emphasised that financial recovery must translate into more reliable basic services for residents.
“Financial recovery is not an end in itself. It is about restoring municipalities so that they can meet their constitutional obligations. These reports show that progress is possible, but only where councils and administrations take ownership of the recovery process and work constructively with provincial support structures,” Minister Bredell said.
Both Ministers reiterated that the Western Cape Government will continue to provide coordinated support through Provincial Treasury and the Department of Local Government, while holding municipalities accountable for meeting FRP commitments.
Cabinet will continue to receive quarterly updates in line with the MFMA to track progress, address risks early and ensure that recovery efforts remain focused, credible and sustained.
Following Cabinet’s adoption of the progress reports, the reports have been posted on the Provincial Treasury website to enable members of the public to also track progress on the financial recovery of their municipalities.
The reports are also available here: