The Local Government Week underway before the National Council of Provinces (NCOP) has once again drawn much attention to how municipalities in the Free State and North West have failed to obtain clean audits. 

The programme, held virtually in conjunction with the South African Local Government Association (Salga), has outlined how municipalities in various provinces are still battling to pay service providers, implement sound financial decisions and deliver services. The programme, already addressed by Minister Nkosazana Dlamini-Zuma, Salga President Thembi Nkadimeng, Auditor-General Kimi Makwetu, amongst other speakers, has also drawn attention to how escalating Eskom and water boards debts at local government is increasingly becoming a nationwide problem as Eskom also battles with load-shedding.

The sitting held virtually comes just days after OFM News reported on how Eskom has attached the bank account of another Free State municipality in efforts to recoup its money. The power utility has recently attached the bank account of the Matjhabeng Local Municipality to recover a R3.4 billion debt for bulk electricity supply. This came just months after the power supplier also got the bank accounts of Maluti-A-Phofung frozen due to the non-payment of its services.

Free State municipalities collectively owe the power utility over R12 billion, making it the province with the highest debt and one with the highest number of defaulting municipalities.

Whilst Dlamini-Zuma has before the Local Government Week confirmed issues faced by municipalities and vowed that they are working on redressing them, other speakers have called for swift action to bring stability to municipalities.

OFM News