Sowa Town council raises P1.5 million as financial pressures mount
Tsaone Basimanebotlhe | Monday December 15, 2025 09:00
The council believes that the initiative is a critical step toward stabilising operations and reducing dependence on government allocations that are no longer keeping pace with rising demands.
Addressing councillors during a recent full council meeting, Sowa Town Mayor Ford Moiteela stated that the decision to raise funds was driven by the urgent need to strengthen internal financial systems and prepare for the challenging fiscal landscape ahead. He told councillors that the council had taken deliberate measures to boost its resilience in a climate where resources were becoming increasingly scarce each year.
Moiteela underscored that the funds were raised to support a broader financial recovery strategy, explaining that “the importance of raising such funds is to tighten financial controls, improve efficiencies, and strengthen revenue mobilisation as they strive for a more sustainable financial position.”
He stated that the council must be proactive if it intends to remain functional and effective despite the national economic slowdown.
He reminded councillors that the Ministry of Finance has already signalled consistent reductions to the Revenue Support Grant, the primary financial lifeline for councils across the country. According to Moiteela, the warning is clear, and councils cannot afford to ignore it.“I wish to affirm that the Ministry of Finance has stated that the Revenue Support Grant (RSG) will be reduced annually, and we must prepare according,” he said.
Moiteela revealed that for the 2025/2026 financial year, Sowa Town Council has so far received P32.5 million in RSG funding, an amount he said is insufficient to support the town’s growing needs. “This disbursement represents only 32.94 percent of the expected third-quarter allocation, leaving the council with significant shortfalls at a time when service demands continue to expand,” he pointed out.
He also stressed that the money is too little to sustain essential council operations, noting that the gap between what councils require and what they receive is widening. He warned that without alternative income streams, local authorities risk facing operational disruptions, slower service delivery, and rising community dissatisfaction.
Regarding the development budget, Moiteela explained that the council has also been hard hit, and of the proposed P3.6 million intended to support a range of development projects, they have so far received only P941,716.46, which translates to 26 percent of the planned allocation.
Moiteela told councillors that this level of underfunding affects the progress of key projects and limits the council’s ability to deliver improvements that residents have been waiting for. “The delay in disbursement of development funds leads to cost escalations due to inflation, rising prices of materials, as well as extended labour and contractor claims,” he said.
He added that slow-moving projects not only raise costs but also delay the community’s access to crucial services, a situation that undermines local development efforts and widens service delivery gaps.
Moiteela expressed concern that residents are often the first to feel the consequences of delayed funding, as projects such as infrastructure upgrades, maintenance works, and utility improvements slow down or come to a standstill. He said such delays disadvantage the community and limit socio-economic development at a time when the town is striving to promote growth and stability.
The mayor explained that the ongoing financial challenges highlight the urgent need for councils to work toward financial independence rather than relying heavily on central government grants. He told councillors that “these funding challenges bring them back to the critical need for financial independence as a local authority.” According to him, raising P1.5 million internally demonstrates that councils have the capacity to mobilise resources when necessary.
He encouraged councillors to continue exploring avenues for revenue enhancement, improved fee collection, strengthened compliance with council by-laws, and investment opportunities that can generate sustainable income. He said the council must adopt smarter financial management systems, improve accountability, and eliminate inefficiencies that drain resources.
Moiteela noted that the financial crisis affecting councils is a national issue, not unique to Sowa. However, he insisted that the town must not wait for conditions to improve, arguing that local authorities must take the initiative to protect their operational stability.
He urged the full council to remain committed to developing practical solutions and ensuring that the funds they raise are used strategically to support essential services and long-term planning.