Matjhabeng's legal bills under fire amid court-ordered provincial intervention
A legal status report revealed that although the municipality adopted various litigation strategies to control legal costs since 2015, implementation was erratic and largely ineffective
City Press had previously reported that Matjhabeng was grappling with a runaway legal bill amounting to R134 million in claims
As the courts affirm that the Matjhabeng Municipality should be placed under provincial administration due to its failure to uphold constitutional obligations, serious concerns are mounting over the municipality's excessive legal spending — diverting crucial funds away from essential service delivery.
The Free State High Court in Bloemfontein recently upheld its earlier ruling, dismissing Matjhabeng Municipality's application for leave to appeal in a case brought by the DA. The legal action sought to invoke Section 139 of the Constitution, paving the way for provincial intervention in the municipality's affairs.
Section 139 of the SA constitution outlines the powers of the provincial executive to intervene in a municipality that fails to fulfil its constitutional or legislative obligations. This intervention can include providing support, appointing administrators, or even dissolving the council if necessary. National legislation further regulates the processes involved.
The DA had argued, and the court agreed, that Matjhabeng was in serious and persistent breach of its constitutional duties to provide basic services and manage its finances effectively, as required by Sections 152(2) and 153(a) of the Constitution.
Court ruling and failed appeal
In the initial judgment, delivered on 30 May 2024, and referenced in the application for leave to appeal by the Matjhabeng municipality, which was heard on 7 March 2025, Judge Van Rhyn stated that it was 'not disputed that Matjhabeng Municipality breached its duties under subsection 152(2) and 153(a) of the Constitution'.
'[The] court [was] compelled to declare that [the] municipality is in serious or persistent breach of obligation to provide basic services and meet financial commitments as [a] result of a crisis in its financial affairs.'
This pronouncement from the court revealed that the municipality itself did not contest the fact that it was failing to fulfil its constitutional duties, leading to the DA's attempt to invoke Section 139.
Following that ruling, the Matjhabeng Municipality applied for leave to appeal — but Judge Van Rhyn dismissed the bid, finding no merit in the application. The court noted that the municipality introduced 'new arguments… for the first time in the application for leave to appeal,' which the judge criticised as procedurally flawed.
It is not permissible for a litigant to raise new issues in an application for leave to appeal.
Judge Van Rhyn
Judge Van Rhyn ultimately ruled that the application had 'no reasonable prospects of success on appeal and stands to fail,' and ordered the municipality to pay the legal costs of the application.
Foundation calls for transparency, forensic probes, and political accountability
Despite the court's decision mandating provincial intervention, the Matjhabeng Community Foundation (MCF) has flagged alarming figures tied to the municipality's legal expenditure. According to the MCF, a staggering amount of public funds continues to be spent on legal battles — often unsuccessfully — instead of on urgently needed service delivery.
City Press had previously reported that Matjhabeng was grappling with a runaway legal bill amounting to R134 million in claims — a situation that has severely strained the municipality's finances.
A legal status report, authored by senior legal manager Mthuthuzeli Vanga, revealed that although the municipality adopted various litigation strategies to control legal costs since 2015, implementation was erratic and largely ineffective. Despite having multiple strategies, the municipality struggled to enforce them consistently.
Teboho Elisha, acting spokesperson of the Matjhabeng Community Foundation voiced alarm over this trend, questioning whether anyone is being held accountable.
The question is, when will this stop? Who is benefiting from these litigations?
Teboho Elisha
'Several publications recently reported on Matjhabeng's legal status report, which laid bare taxpayers' wastage on failed litigations. Has this report been tabled before council? Who is being held accountable for the reported R300 million wasted?'
Elisha also pointed fingers at the municipality's leadership. He told City Press that MCF is 'deeply concerned about the legal costs incurred by the municipality in the past three years under the leadership of [convicted mayor] Thanduxolo Khalipha'.
It has been clear from the onset that the intention was never to defend the institution but to advance other motives. This is informed by the fact that the municipality has paid more than what they should have settled for. Instead of settling for R100 million acknowledged debt, they decided to defend losing cases left, right and centre, and now the costs could amount to a quarter billion.
Elisha
He added that 'as far as we are concerned, the legal report [by Vanga] has not been tabled before council. As ratepayers, we are still waiting for this report to be tabled in council for discussion and resolution.'
Elisha called for swift accountability, stating that the foundation believes the recommendation by Vanga to appoint senior counsel for an investigation must be implemented urgently.
On the broader crisis of leadership, Elisha said that 'as long as there's controversy around the leadership of the municipality, the public trust has been compromised, and ratepayers have lost hope.'
The MCF had also last month submitted a formal complaint through its lawyers to Matjhabeng Speaker Bheki Stofile, questioning why there has been no investigation into misconduct complaints lodged against Khalipha.
The foundation warned that reinstating Khalipha as mayor — after his criminal conviction and before the misconduct investigation was concluded — would be premature, unlawful, and open to legal challenge.
City Press can confirm that Khalipha returned to office on 10 April.
The MFC lawyers requested confirmation on whether disciplinary proceedings took place and asked for all reports, communication with the MEC for local government, and documentation regarding any action taken to recover municipal property allegedly withheld by Khalipha during his suspension.
Elisha also criticised the ANC's internal contradictions: 'We are seeking legal advice while noting in the public domain the inconsistencies of the implementation of the ruling party constitution on step aside. We are aware that Khalipha has appealed his criminal conviction and has to appear on the Integrity Committee of the ruling party while back in the offices of the municipality.
'Having him in office before his legal matters conclude puts Matjhabeng Local Municipality in disrepute and raises legal and labour risks.'
'Since taking over, a lot of damage has been done to both the institution and residents such that his continued leadership will further deepen the crisis. Matjhabeng needs a proper leader whose credentials are not questionable. Khalipha's primary education is not sufficient to bring a significant change. It further widens the gap and decreases trust between communities and the institution,' Elisha said.
On the state of services, he painted a grim picture: 'We are constantly on the ground and interact with the community regularly. We can confirm that residents of Matjhabeng are constantly confronted with raw sewage daily, and the road infrastructure is terrible with dumping sites everywhere.'
Elisha said the foundation 'supports the urgent implementation of Section 139 to protect the administration from political interference,' and has called for 'forensic investigations to protect the public purse and curb wrongdoing.'
On the other hand, City Press sources have revealed that the municipality's preoccupation with legal challenges has not only drained financial resources but also shifted internal focus away from collapsing infrastructure and service backlogs.
One source said: 'We're in court more often than we're on the ground. The energy that should be going into fixing sewage, water supply, and billing systems is being lost in litigation that we often lose.'
Another municipal official added: 'what's being exposed in court are not technicalities — they're systemic failures. These court losses aren't isolated incidents; they're part of a pattern.'
As the process for placing Matjhabeng under administration unfolds, attention is turning not only to governance failures but also to how ratepayer money continues to be spent.
The provincial executive now faces the task of confronting both the governance and financial rot exposed in Matjhabeng.
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