
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.

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.

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

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