According to the Cooperative Governance and Traditional Affairs Department, municipalities are plunging into deeper debt due to various reasons - including non-payment of services by households and government departments.

The current 8th Local Government Week virtual session comes just days after OFM News reported how Eskom had 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 froze the bank accounts of Maluti-A-Phofung due to the non-payment for 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.

OFM News