With the Electoral Commission of South Africa (IEC) expected to announce the final results of the 2026 Local Government Elections on Sunday, 8 November, attention will shift to the establishment of new municipal councils and the responsibility of incoming councillors to strengthen governance, accountability, and service delivery.
As municipalities prepare for the transition into a new term, the Department of Cooperative Governance (DCoG), National Treasury, and the South African Local Government Association (SALGA) have outlined a series of measures to guide provinces and municipalities through the process.
The joint guidelines, signed on 30 September 2026, provide a roadmap for the establishment of municipal councils, the election of political office-bearers, the management of coalition arrangements, administrative handovers, and the implementation of municipal development priorities.
The three institutions have reaffirmed their commitment to supporting provinces and municipalities in strengthening governance, accountability, and service delivery during and after the 2026 elections.
All stakeholders have been urged to work collaboratively to ensure stability, ethical leadership, sound financial management, and responsive local governance throughout the transition into the new term of municipal councils.
They have also emphasised that any incidents of fraud, corruption, maladministration, or governance failures must be addressed decisively and reported to the relevant authorities without delay.
The guidelines come against the backdrop of a local government environment that has experienced governance, infrastructure, service delivery, and political instability challenges.
Following the 2021 Local Government Elections, the number of coalition-led municipalities increased to 76, highlighting the importance of political stability and effective governance arrangements in ensuring that municipalities remain functional.
Establishment of new municipal councils
After the Electoral Commission declares the final election results, one of the priorities will be to establish newly elected municipal councils and political leadership.
In terms of Section 29(2) of the Local Government: Municipal Structures Act, 1998, the municipal manager, or a person designated by the provincial MEC responsible for local government in the absence of the municipal manager, must convene the first council meeting within 14 days after the council has been declared elected.
For district municipalities, the first meeting must take place within 14 days after all members appointed by local councils have been appointed.
The first council meeting will provide for the election of the Speaker and other political office-bearers, including mayors, executive mayors, and deputy mayors, where applicable.
The composition of Mayoral Committees and Executive Committees will also be determined in accordance with the applicable provisions of the Municipal Structures Act.
In municipalities operating under a collective executive system, the allocation of seats on the Executive Committee to political parties must follow the prescribed uniform formula based on their representation in council.
The guidelines also provide for procedures to resolve tied outcomes in the election of office-bearers or the allocation of Executive Committee seats, including the tossing of a coin or drawing of names by lot under transparent conditions.
Local councils will also be required to appoint their representatives to district councils within 14 days after the results of the local council elections have been declared.
Municipalities may use physical, virtual or hybrid arrangements for their first council meetings, provided these comply with applicable legislation and the council's Standing Rules and Orders.
Coalition arrangements and political stability
Coalition negotiations are expected to form part of the post-election process in municipalities where no political party secures an outright majority.
The guidelines issued by DCoG, National Treasury and SALGA emphasise that coalition agreements are political arrangements between parties and cannot supersede the Constitution, the Municipal Structures Act, the Municipal Systems Act, the Municipal Finance Management Act (MFMA), or any other applicable legislation.
Political parties have been encouraged to conclude coalition arrangements as early as possible to minimise uncertainty and facilitate the timely establishment of municipal governance structures.
The guidelines further encourage parties to consider governance arrangements that promote stability, accountability, transparency and continuity of service delivery.
Coalition agreements should also be aligned with national coalition governance guidelines issued by the Department of Cooperative Governance.
Municipal managers and other officials must remain impartial throughout the process and may not participate in, facilitate, or influence coalition negotiations.
Municipal resources, including facilities, vehicles, communication systems, officials and funding, may not be used for coalition negotiations or political party activities.
This is intended to safeguard the independence of municipal administrations and ensure that public resources are not diverted towards political interests.
The circular makes it clear that, irrespective of the political arrangements reached between parties, the establishment of municipal governance structures must proceed within the timeframes prescribed by law.
Handover of municipal responsibilities
Another important task following the announcement of the results will be the formal handover from outgoing municipal leadership to newly elected councils.
The guidelines propose two separate handover reports to ensure that incoming councillors have a comprehensive understanding of the state of their municipalities.
The political handover report, led by the Speaker and the Mayor, Executive Mayor, Executive Committee or Mayoral Committee, should provide an account of the municipality's political and governance performance during the outgoing term.
It should outline the state of the municipal council at the beginning of the term, progress achieved, political and administrative challenges experienced and areas requiring further attention.
In coalition-governed municipalities, the report should also document the governance arrangements, key risks encountered and lessons learnt in managing coalition governance and stability.
The second report will be an administrative handover, led by the municipal manager, Chief Financial Officer and senior management team.
This report should provide incoming councils with a detailed overview of the municipality's administration, financial position, service delivery programmes, infrastructure projects and outstanding priorities.
It must include information on the municipality's organisational structure, senior management appointments, key policies, performance against programme targets and its overall financial health.
Particular attention must be given to cash and investments, outstanding creditors and debtors, budget funding, loans and financial commitments.
The report must also provide details of the municipality's audit outcomes for the past three financial years, including strategies to address audit shortcomings and the status of unauthorised, irregular, fruitless and wasteful expenditure.
Information on consequence management and outstanding financial misconduct matters must also be included.
On service delivery, incoming councils should receive information on the provision of basic services, existing backlogs, the condition of municipal assets, maintenance requirements and major infrastructure projects planned for the 2026/27 financial year and Medium-Term Revenue and Expenditure Framework.
Municipalities must submit these handover reports to provincial cooperative governance departments, National Treasury, DCoG and SALGA before the first council meeting.
Incoming councillors must also receive information packs containing Integrated Development Plans (IDPs), municipal budgets, Service Delivery and Budget Implementation Plans, annual reports, audit outcomes, standing rules, systems of delegation and relevant governance frameworks.
Financial accountability and consequence management
The management of municipal finances will remain a critical responsibility for incoming councils.
The guidelines require municipal councils to ensure that budgets are funded, credible and aligned with realistically anticipated revenue.
“Municipalities with unfunded budgets, adverse audit outcomes or persistent financial challenges may be subjected to interventions and funding-related measures in terms of applicable legislation. Municipalities must prioritise the payment of creditors, including Eskom and Water Boards, to avoid service disruptions and financial instability,” the document stated.
Incoming councils will be expected to pay particular attention to outstanding municipal debts and creditor payments, including Eskom and water boards, to prevent service disruptions and further financial instability.
They will also need to monitor the implementation of audit action plans and ensure that outstanding audit findings are addressed.
The guidelines require municipalities to maintain continuity in audit processes during the transition, with municipal managers, Chief Financial Officers and senior management ensuring that records, supporting documentation and audit evidence remain available.
“Where key officials responsible for financial reporting, audit coordination or governance oversight vacate office during the transition period, appropriate handover arrangements must be put in place to ensure continuity.”
Incoming councils should be briefed at the earliest opportunity on audit outcomes, outstanding information requests, material audit risks, and corrective action plans.
The circular also highlights the need to strengthen consequence management in municipalities.
Administrative handover reports must include the status of processes dealing with unauthorised, irregular, fruitless and wasteful expenditure, including action taken in terms of Section 32 of the MFMA.
The status of financial misconduct proceedings and criminal proceedings, where applicable, must also be documented.
The institutions have stressed that incidents of fraud, corruption, maladministration, and governance failures must be dealt with decisively and reported to the relevant authorities without delay.
Municipalities must also maintain internal controls to prevent the misuse of public funds and municipal resources.
The guidelines specifically prohibit municipalities from using municipal funds to finance political party activities, including payments for caucuses or other political operations.
Any expenditure incurred in contravention of the MFMA may constitute irregular expenditure, with officials and municipal office-bearers who authorise unlawful expenditure potentially facing financial misconduct proceedings and liability in terms of the Act.
Review of development plans and municipal systems
Once established, the new councils will have to review key municipal planning and governance instruments to ensure that these are aligned with their development priorities.
One of the important responsibilities will be the review of the municipal system of delegations, which determines the allocation of responsibilities and decision-making powers within the municipality.
In terms of the Municipal Systems Act, a newly elected council must review its system of delegations within one year of taking office.
Existing delegations will remain in force until the review is completed to ensure that administrative and operational functions continue without interruption.
Municipal managers are expected to prepare a process plan for the review and table it at the first council meeting.
The review must consider governance reforms, risk-control measures and mechanisms to strengthen oversight.
Incoming councils will also have to consider their Integrated Development Plans (IDPs), which provide the strategic framework for municipal development and service delivery.
The IDP integrates sectoral plans and aligns municipal resources and capacity with the development priorities of communities.
The guidelines allow incoming councils to consider adopting the existing IDP of the preceding council or initiating an amendment process if they are dissatisfied with the priorities contained in the adopted plan.
Any amendments must comply with the Municipal Systems Act and applicable planning and performance management regulations.
The establishment of ward committees will also be an important part of strengthening community participation in local governance.
In terms of the Municipal Structures Amendment Act, local and metropolitan municipalities have 120 days after the elections and the first council meetings to establish ward committees.
These structures provide an important link between communities and municipal councils, allowing residents to participate in local planning and raise service delivery concerns.
Municipalities are expected to ensure that ward committee members are elected through credible and democratic processes.
Provincial administrations must support municipalities in the induction of newly elected ward committee members as part of broader capacity-building programmes.
Building capable and ethical municipal administrations
The guidelines also emphasise strengthening the professional capacity of municipal administrations to support the incoming political leadership.
Municipalities and provinces are urged to continue implementing the Municipal Staff Regulations, 2021, and related competency frameworks.
These regulations provide for uniform standards relating to organisational design, recruitment, appointments, performance management, staff development and supervision.
The circular also provides for the review of municipal staff establishments within 12 months of the election, subject to specific legislative conditions.
These include the election of a new council, adoption of a new IDP, substantial or material changes to municipal functions or the redetermination of municipal boundaries.
Any revised staff establishment must be approved by a majority of councillors.
Municipalities are encouraged to ensure that their organisational structures are sustainable, adequately funded and aligned with service delivery priorities.
The guidelines further clarify the employment arrangements for municipal managers and senior managers to ensure continuity and compliance with the law.
Newly elected councillors will also be supported through an Integrated Councillor Induction Programme to be developed by SALGA in collaboration with DCoG, National Treasury and the National School of Government.
“The programme will provide incoming councillors with a broad overview of the municipal environment and will, inter alia, cover their roles and responsibilities; the policy and legal framework; and various municipal processes.
“The topics to be covered will, amongst others, include councillor oversight; good governance principles; delegations; roles and responsibilities; cooperative governance; standing rules of order; compliance with the Code of Conduct for councillors; financial management; and strategic planning,” the circular states.
Strengthening intergovernmental support
The District Development Model (DDM) will continue to serve as an important mechanism for strengthening cooperation between national, provincial, and local government.
Adopted by Cabinet in 2019, the model promotes integrated planning, budgeting, and implementation through the approach of “One District, One Plan, One Budget”.
It covers the country's 44 district municipalities and eight metropolitan municipalities.
The model seeks to improve coordination in addressing poverty, unemployment, and inequality, strengthen municipal capacity, align government plans and budgets, and improve oversight over public expenditure and infrastructure delivery.
The circular urges all stakeholders to align municipal planning, budgeting, and service delivery programmes with approved DDM One Plans.
Municipalities, provinces, and national departments must also continue implementing Municipal Support and Intervention Plans (MSIPs) to address governance, financial management and service delivery challenges.
Newly elected councils are expected to institutionalise these plans within their municipal planning and oversight systems, while DDM structures and intergovernmental forums will continue monitoring implementation and reporting on progress.
Municipalities currently under intervention in terms of Section 139 of the Constitution and Chapter 13 of the MFMA will also remain subject to the applicable intervention arrangements.
DCoG and National Treasury are expected to issue a separate comprehensive circular to guide municipalities that were placed under intervention before the elections.
As the country moves from the electoral process to establishing new municipal councils, the focus will be on ensuring political changes do not disrupt municipal administration or compromise the delivery of basic services.
The guidelines provide a framework for incoming councils to take responsibility for their municipalities, address inherited governance and financial challenges, and ensure that municipal resources are directed towards improving the lives of communities.
DCoG, National Treasury and SALGA have reiterated their commitment to supporting provinces and municipalities throughout this transition, with an emphasis on stability, ethical leadership, sound financial management and responsive local governance.
The institutions have urged all stakeholders to work together to ensure that the new term of municipal councils is underpinned by accountability and effective service delivery, while any incidents of fraud, corruption, maladministration or governance failures are addressed decisively and reported to the relevant authorities without delay.- SAnews.gov.za
