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FS metro’s financial woes worsen

───   TSHEHLA KOTELI 09:35 Wed, 09 Mar 2022

FS metro’s financial woes worsen | News Article
Graphic: USA Today

The financial woes faced by the first South African metro to be placed under administration - Mangaung Metro Municipality - look like they will be deteriorating instead of improving.

This is despite Free State premier Sisi Ntombela’s announcement that being under administration is paying off.

Concerns over the financial situation of the metro surfaced during the National Council of Provinces’ Select Committee for Economic Development, Trade, and Industry‘s sitting earlier this year. Bloemfontein's dethroned acting city manager, Sello More, stated the metro’s financial health is fragile.

Among the institutions that the metro is indebted to, are Bloem Water and Eskom. However, the Metro is reportedly owed more than R7.2 billion in outstanding service delivery debt.

More stated the metro is still in no position to borrow funding for capital expenditure. The metro has been struggling to stick to their proposed agreement to pay off their Bloem Water debt, which amounts to millions. 

The NCOP said the findings in the Auditor-General’s Report include expenditure of R1.3 billion, the non-adherence to tender procedures, and water losses worth R187 million.

ALSO READ: FS metro starting to see the light


The outstanding debt owed to the metro includes the debt of Free State government departments that amounts to nearly R2 billion. Businesses owe the metro R1.2 billion and the rest is owed by households across the metro.

ALSO READ: FS government to pay up R90m to Centlec

The Metro has recently embarked on a drive to recoup billions owed to them. It began with the Metro's power utility, Centlec, threatening to disconnect key government and big business buildings in Bloemfontein that owe them. However, the Provincial Government was able to make a promise to pay R90 million monthly to try and settle its debt in arrears.


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