Central SA
FS, NW municipal revenue collection 'a huge concern'─── KATLEHO MORAPELA 12:00 Tue, 27 Oct 2020
The lack of debt collection due to the Covid-19 pandemic and escalating municipal debts has put more strain on the financial health of many municipalities.
According to the National Council of Provinces (NCOP) a number of municipalities in the Free State, North West, Gauteng and other parts of the country are battling to deliver services due to lack of revenue. This is coupled with their inability to pay their service providers within 30 days. Permanent delegates of the NCOP are on Tuesday morning having hybrid meetings in provincial legislatures where financially distressed municipalities are presenting their financial reports.
The NCOP delegates in the Free State, North West and Gauteng this morning heard how municipalities in these provinces are not only battling to settle their Eskom and water board debts but how their revenue collection has declined due to Covid-19.
The NCOP has further outlined its concerns over issues that have been raised by the Auditor-General and how municipalities are still grappling to produce clean audits.
OFM News has previously reported that those in the Free State and North West have not produced any clean audits for the 2018/19 financial year.
Municipalities in the Free State are still considered amongst the highest Eskom defaulters, while those in the North West are said to still be grappling with their R556.2 million VBS investment loss.
OFM News
