Municipalities Owed Over R100bn, Parliament Told

parliament - Municipalities Owed Over R100bn, Parliament Told

Municipalities are not only sitting with massive irregular expenditure, but they are also owed over R100 billion.

National Treasury and the Auditor-General on Friday briefed parliamentarians on the financial state of five municipalities.

The councils with the most irregular expenditure include the OR Tambo District Municipality, the Nelson Mandela Bay Metro, the Matlosana Local Municipality and the City of Johannesburg.

The Auditor-General and Treasury briefed members of the select committee on cooperative governance, water and sanitation and human settlements on the poor financial health of five municipalities.

National Treasury chief director TV Pillay told MPs the worst-performing municipalities were also owed a R150 billion in unpaid debt, and this had a serious impact on revenues.

“It’s bad news; R150 billion on the debtor book not collected, which means R150 million not put into infrastructure or services. I think it’s important that we bring that back to service delivery and once we do that, we can start fixing things.”

Auditor-General Kimi Makwetu said a number of municipalities even paid for services they did not receive.

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