Cabinet has placed the Mangaung Municipality in the Free State and Enoch Mgijima Municipality in the Eastern Cape under administration.
Minister in the Presidency Mondli Gungubele said both municipalities had experienced significant financial and service delivery failures for a prolonged period.
The Free State placed the Mangaung Municipality under a mandatory intervention in December 2019 but failed to implement the financial recovery plan.
The Enoch Mgijima Local Municipality within the Chris Hani Municipality was also placed under mandatory intervention by the Eastern Cape government in 2018.
However, it failed to make progress in improving its financial and service delivery performance.
Gungubele, together with Finance Minister Enoch Godongwana and Minister of Cooperative Governance and Traditional Affairs Nkosazana Dlamini Zuma, would hold a briefing next week to outline national interventions.