The Masilonyana Local Municipality in the Free State faces a public auction of municipal vehicles and other assets on 26 November 2026 in Theunissen following a court judgment from March 2025 related to creditor disputes. The auction includes two Ford Bantam bakkies, two Toyota Quantums, a Nissan NP300, a Chevrolet Aveo, and a mobile VIP toilet, according to an auction notice confirmed by OFM and SABC News.
Acting municipal manager Zolile Lobe said the municipality is prepared to engage creditors and negotiate payment plans. “What we are using now is what we call the Intergovernmental Relations Framework, where we approach other sectors or departments to say that we are entering into a payment plan. The other thing we want to do is establish credible payment plans,” Lobe said.
The financial crisis stems from longstanding cash flow problems, missed debt obligations, and repeated bank account attachments by creditors such as the Municipal Workers’ Retirement Fund (MWRF), which recently led to salary delays. Masilonyana employees were notified on 22 October 2026 of another attachment to municipal accounts but were assured salaries would be paid based on their employee levels before the month’s deadline.
Free State’s Department of Cooperative Governance and Traditional Affairs head, Tshepiso ‘Sugar’ Ramakarane, said the provincial executive invoked Section 139 intervention in Masilonyana due to financial mismanagement and the municipality’s failure to meet third-party obligations. This intervention was a response to the municipality’s escalating debt, reportedly surpassing R100 million, including arrears to institutions such as SARS and Eskom.
Tshepo Kobane, SAMWU’s regional chairperson, criticised the situation, stating, “The municipality’s fleet is a public asset. As communities, we are all beginning to suffer due to a lack of accountability. The municipality is under administration, so we should not be experiencing this while it is under intervention.” This reflects ongoing community frustration over service delivery disruptions linked to the municipality’s financial instability.
The auction notice stems from a judgment by the Theunissen Magistrate’s Court on 26 March 2025. Despite attempts to negotiate payments, the municipality’s poor financial state has led creditors to move against its assets. Municipal accounts have been repeatedly attached this year, causing further delays in salaries and interruptions to services.
Masilonyana municipality encompasses towns including Theunissen, Brandfort, Winburg, and Verkeerdevlei. Its financial challenges mirror a broader pattern of distress affecting many smaller municipalities reliant on grants but struggling with debt management and payroll burdens.
At this stage, the full scale of Masilonyana’s outstanding debt remains unclear due to varying reported figures and incomplete official confirmation. The exact legal status of assets listed for auction will be verified following the scheduled sale. CapeFlats.co.za will monitor developments and report on any new updates regarding creditor negotiations and potential impacts on residents and municipal service delivery.