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43 South African municipalities have collapsed, 151 on the brink — Treasury

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SANews

21 September 2022

MyBroadband

English

Phefumlela Bam

Media article

Towns Action Network

Africa

This article describes how 151 municipalities in South Africa are on the brink of collapse while 43 have already collapsed and require urgent intervention to rescue them. These results were presented before Members of Parliament from Treasury and senior officials at Parliament's Standing Committee on Appropriations. The 151 municipalities deemed bankrupt and insolvent are unable to pay creditors and third parties including the South Africa Revenue Services and employees' pension funds. The underlying financial issues municipalities are faced with emanate from revenue management failures.

 

Despite the challenges, there is some progress and achievements that have been recorded. Studies conducted in four provinces have revealed revenue that can be derived from potential customers and the existing customer base. Treasury has developed tools to assist municipalities with budgeting and debt collecting. 

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Built environment

Corruption

Economics

Governance

Human settlements

Land

Local government

Municipalities

Service delivery

Small Towns

South Africa

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