Goodhope council faces revenue crisis
Tsaone Basimanebotlhe | Tuesday May 26, 2026 10:34
Addressing councillors during a full council meeting on Tuesday, Nkwane said the local authority’s financial position remains under immense pressure, a development that is now affecting the implementation of planned programmes and services. He explained that revenue inflows have fallen far below expectations, making it difficult for the council to operate smoothly and deliver projects on schedule. According to Nkwane, the council had collected only P122,401.36 by April 30, 2026, against an approved annual revenue target of P9.93 million. He said the figure represents a mere 1.2 percent of the annual target, highlighting the magnitude of the financial challenges facing the council. Furthermore, he warned councillors that the weak revenue performance could negatively affect service delivery if urgent interventions are not introduced to improve collections. The chairperson, therefore, called for collective efforts and stronger strategies to boost revenue generation and stabilise the council’s financial position before the situation worsens further.
“This low performance reflects a combination of factors, including the slow commencement of revenue mobilisation activities, weak compliance levels, limited enforcement capacity, and low uptake of some of our services,” he said. “Operational challenges affecting our internally generated income streams have also contributed to this outcome.” Moreover, he said their financial position has been further affected by uncertainty surrounding the disbursement of the Revenue Support Grant (RSG), which remains our primary source of operational financing. He also revealed that continued dependence on external funding exposes the Council to liquidity pressures whenever grant inflows are delayed.
“This is a structural vulnerability that we must confront with urgency and innovation,” he said. Furthermore, he highlighted that the expenditure as of April 30, 2026, was P17.46 million against a P239.1 million budget, reflecting low first-month utilisation. “This is mainly due to phased roll-out, procurement delays, and spending controls to protect limited cash,” he stressed. He pointed out that Personnel emoluments remain the highest cost, while operational, establishment, and capital spending are still in preparatory stages. While restraint has supported short-term stability, he said, prolonged weak revenue will undermine service delivery, maintenance, and planned programmes unless they act early. However, he said the government is encouraging Council-Owned Entities, including Bontsala (Pty) Ltd, to diversify revenue and support local economic development. “These entities can commercialise services and strengthen long-term sustainability, but only with strong governance, sound business plans, adequate financing, and effective oversight, so they become assets, not liabilities,” he stated.
The chairperson also said preparation of the final 2025/26 books of accounts is underway, and Management is working to submit the financial statements by the statutory deadline of 30 June 2026. He said their priorities are clear: strengthen revenue mobilisation; improve collection and enforcement; secure timely grant disbursements; accelerate implementation of planned activities; and maintain prudent financial management. He also assured them their financial challenges are serious but manageable. With discipline, innovation, and collective commitment, he said they can stabilise finances and continue delivering essential services in the Goodhope district.
On other issues, the chairperson has also hinted that most government facilities in their district are in a state of disrepair due to lack of funds. “However, some of the dilapidation on these Government facilities, especially on staff houses, is a result of negligence and vandalism. This has negatively affected the government's already limited coffers. The district leadership has agreed to put measures in place, measures that will ensure that occupants are held accountable for damages made to staff houses,” he revealed. On water debt, the chairperson revealed that the district's debt has slightly decreased from P12.9 million to P12.4 million. “The breakdown is: Business: P0.48 million, Domestic: P4.2 million, Government: P6.8 million and District Council: P0.96 million. WUC has intensified disconnections for non-payment, focusing on business and domestic customers,” he said. He said Government arrears remain the largest share and require continued inter-agency engagement. Still on water issues, he said they welcome the improved stability in the water supply, but lasting security depends on completing strategic projects on time.
“Delays in Contracts two and three require stronger oversight and contractor accountability. Progress in sewerage rehabilitation and network expansion shows that meaningful improvements are underway. Let us keep working with WUC, village leadership and stakeholders to deliver reliable, safe and sustainable water services to every household,” he said. Meanwhile, ongoing layout designs and upcoming allocations, he said, include plans for Lepurung and Mabule to meet rising demand.
He said they are planning to allocate a further 198 residential plots in Mmakgori this month. He, however, highlighted that financial constraints have delayed surveying of 895 plots in Phitshane-Molopo, 374 in Sedibeng, 212 in Dikhukhung, and 226 in Sekhutlane. While on waiting lists, the demand remains high: Phitshane-Molopo (462), Sedibeng (175), Lepurung (97), Dikhukhung (149), Mmakgori (282), Tshidilamolomo (19), Mabule (14), and Sekhutlane (270).