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The King Sabata Dalindyebo (KSD) Municipality has dismissed reports suggesting it is on the brink of financial collapse, labelling them false and misleading. In an official statement released on 8 October 2025, the municipality said it is financially stable, with improved revenue collection and a clear plan for continued recovery.
WHAT HAPPENED
Recent reports from News24 and the SABC claimed that several Eastern Cape municipalities, including KSD, faced imminent financial collapse.
However, KSD’s leadership responded swiftly, rejecting these allegations and asserting that the municipality has stabilized its finances compared to previous years.
According to official figures, municipal revenue grew from R745 million in 2023/24 to R874 million in 2024/25, marking a R129 million increase. The municipality attributes this growth to stricter collection measures and improved financial management.
“These reports are simply not true. KSD is on a path of recovery, not collapse,” said Ms. Olwethu Mabovula, spokesperson for the Executive Mayor.
OFFICIAL RESPONSE
In its media statement, the Office of the Executive Mayor emphasized that KSD is paying its creditors on time, maintaining key service delivery partnerships, and managing Eskom debt under an agreed repayment plan.
“Our debt to Eskom is under control and poses no immediate threat to municipal viability,” the statement read.
Municipal officials acknowledged ongoing challenges but stressed that the trajectory remains upward, driven by disciplined budgeting and accountability.
The release further urged the media and public to verify information with municipal offices before spreading unconfirmed claims.
“False reporting harms public confidence and distracts from the real work of restoring services to Mthatha and surrounding areas,” the statement warned.
COMMUNITY IMPACT
Residents and community organizations in Mthatha have welcomed the municipality’s clarification. Many expressed frustration over repeated national reports that portray local institutions as unstable.
The municipality assured the public that essential services — including water supply, waste collection, and road maintenance — remain priorities.
“Our focus is service delivery and recovery. We will continue to build financial strength while addressing community needs,” the statement concluded.
The clarification comes as KSD intensifies efforts to rebuild trust and improve service efficiency following years of administrative strain.
