
Municipalities are owed R218bn. So why are they running out of money?
The FFC says a system-wide breakdown in collecting and paying bills is fuelling arrears that more than a decade of government interventions has failed to contain.

The FFC says a system-wide breakdown in collecting and paying bills is fuelling arrears that more than a decade of government interventions has failed to contain.

Lawmakers want legal questions over withheld equitable-share allocations resolved as Treasury begins releasing billions of rand to compliant municipalities.

Municipalities that fix their governance failures could regain funding within weeks, while provinces and national departments are now facing the same scrutiny.

Just 10 of the 69 affected municipalities account for more than R21.6bn in arrears to utilities, retirement funds, SARS and other creditors.

The White Paper describes how municipalities and households are being financially squeezed by escalating input costs – particularly for electricity.

Treasury Director-General Duncan Pieterse says municipalities that fail to reform may increasingly lose operational control of key services.

Investigations across four provinces reveal recurring irregularities, with recovery and prosecution still lagging far behind the findings.

National Treasury Director-General Duncan Pieterse says South Africa’s core fiscal challenge is structurally low economic growth that trails population expansion.

The majority finds the accreditation mechanism effectively coerced funds to amend their rules or risk losing employer contributions – undermining trustees’ fiduciary duties under the PFA.

Recent reports and the Budget Overview expose deep flaws in local government, prompting urgent calls for debt reforms and stricter accountability.

South Africa’s score on the global Corruption Perceptions Index remains at a decade-low, reflecting persistent governance failures.

58% of South Africa’s municipalities – 149 out of 257 – are behind on their retirement fund contributions, highlighting a growing issue in local government finances.