Following a briefing on Limpopo municipalities that invested billions into the VBS Mutual Bank, the committee has called on all municipalities to address their challenges and get their act together. 

Municipalities in the Limpopo and the North West are amongst those who lost billions through their investment with the now liquidated bank. 

The four in the North West alone lost over R1.6 billion, which according to the Auditor-General, Kimi Makwetu, significantly weakened their financial position. 

The committee said it is worrisome that little progress has been made with regard to the recovery of the money, and that many municipalities are plunging deeper into a financial crisis. Municipalities in the two provinces, as well as the ones in the Free State, are amongst those expected to appear before the Standing Committee on Public Accounts (Scopa) next year.

The committee has previously reported that a number of municipalities including the infamous Maluti-A-Phofung and Matjhabeng Local Municipalities in the Free State will have to provide payment plans on how they are going to pay Eskom by the end of February next year.

This, as their debt to Eskom and water boards also continues to escalate. Eskom last week told the committee that municipal debt has escalated from R1.2 billion in 2013 to over R26 billion by September this year.

The power utility two weeks ago also issued power interruption warning to three municipalities in the Free State and to the Naledi Local Municipality located in the Dr Ruth Segomotsi Mompati District Municipality in the North West due to non-payment.

The Dr Ruth Segomotsi Mompati District Municipality is amongst the four North West municipalities still in trouble for its R150 million investment in the VBS Mutual Bank.

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