This includes plans to deal with municipalities’ growing debts to Eskom and water boards as well as their inability to generate income. According to the latest report, municipalities throughout the country owe Eskom over R17 billion and are cited as one of the reasons as to why the state owned power supplier is in a financial rut. The department has in its 2017/18 Annual Report, acknowledged that majority of municipalities in the country are dysfunctional and in need of intervention. OFM Previously reported that all municipalities in the Free State are according to the Auditor-General amongst those requiring intervention and that they collectively owe Eskom more than R7.8 billion, which is the highest amount owed by municipalities countrywide.

The 2017/18 Annual Report has also highlighted that the increasing number of community protests against service delivery issues is an indication of the much needed change in various municipalities. Deputy Minister, Andries Nel has in this report also indicated that plans to fill critical vacancies as well as measures to be taken to hold to those implicated in maladministration and abuse of funds accountable will also be outlined.

Following a disclaimer received by the department for this fiscal year, they have committed to priorities challenges faced by municipalities.

OFM News