The financial crisis affecting municipalities in Mpumalanga has worsened as reports show that several government departments owe about R1.9b in unpaid municipal bills. This growing debt not only hampers municipalities’ ability to provide basic services, but also raises concerns about governance, accountability and a long-standing culture of non-payment in local government.

The Standing Committee on Public Accounts (Scopa) report of July 2025 indicates that provincial and national departments are among the biggest debtors to municipalities, failing to pay for essential services like water, electricity and rates. This debt poses a serious challenge for local governments already struggling with poor revenue collection and service delivery issues.

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The latest Scopa report reveals this uncomfortable truth: While the government expects municipalities to provide essential services, it appears disinclined to pay for them.

The Department of Public Works, Roads and Transport alone owes nearly R1b, with Bushbuckridge Local Municipality being the hardest hit. Schools, hospitals and clinics collectively owe hundreds of millions, further weakening the fragile financial base of local councils.

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Despite repeated interventions, the numbers tell a sobering story. Of the R1.9b owed, departments had managed to pay R4m by January 2025. Schools’ arrears more than doubled in recent years, climbing from R52m in 2022 to R128m in 2025, without meaningful action to address the increase.

Scopa members also raised concerns about funds being misallocated when payments are eventually made, stressing the need for strict ring-fencing of revenue to ensure monies are used for their intended purpose. In one case, Emalahleni Local Municipality could not account for a R9m payment made in 2018, while other municipalities continue to battle with historic debts dating back more than a decade.

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Opposition parties claim that the crisis is not just financial but also systemic, rooted in a political environment that has tolerated, and sometimes encouraged, non-payment for too long.

James Masango, DA member of the Mpumalanga Provincial Legislature (MPL), argues that the ANC has fostered a culture of leniency that has backfired.

“The ANC municipalities allowed a culture of non-payment to thrive among residents who continued to vote for them, and now this strategy is coming back to haunt them. The extension of this to departments might be due to corruption. This shows a failure to enforce debt and credit policies.”

Masango emphasised that municipalities cannot function properly if they treat essential services as optional rather than necessary. “It’s true that this is affecting service delivery. Municipalities need to operate like businesses to provide services effectively. Without funds, you can’t deliver because you need money to cover expenses.”

The DA’s proposed solution is clear: enforce payment deadlines strictly. “The DA will implement a policy to ensure all bills are paid by the seventh of every month. If not, we will push to have electricity cut to the departments, and also to businesses and residents who don’t pay. Municipalities must follow their revenue collection policies and strategies as outlined by the Treasury.”

VF Plus MPL member Werner Weber echoed these concerns, saying the issue has reached a breaking point.

“As it stands, all of these departments are financially struggling and this issue is growing due to unpaid bills. Departments already struggle with service delivery,” Weber stated.

He has taken steps to address the matter formally. “I have arranged a meeting with the MEC for local governance, Speed Mashilo, to discuss this issue, to be direct and to find possible solutions. It is completely unacceptable. Residents who fall behind on municipal bills risk having their water cut off, electricity disconnected or facing legal action – yet the government can continue to accrue debt without consequence.”

At the heart of the crisis is the ordinary citizen who bears the burden when municipalities can’t maintain infrastructure, fix water leaks or provide electricity. Municipalities argue that without reliable revenue, they cannot fund the services they are required to provide. When municipalities can’t pay their own creditors, including Eskom, it leads to disconnections or load reductions, further destabilising communities.

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Officials provide familiar excuses: invoices are “invalid,” billing systems are outdated or historical disputes remain unresolved. But Tsakani Malulekethe, the auditor-general, pointed out in her 2023/24 report that these are weak justifications.

“Municipalities provide services in good faith. Withholding payment due to technicalities is not only poor governance; it betrays the communities that the government is sworn to serve.”

Unless municipalities strengthen their enforcement of credit control and revenue collection policies, the cycle of debt will continue to compromise service delivery. Although the provincial Treasury’s roll-out of smart meters and debt forums are steps in the right direction, none of this changes the main issue: government departments are breaking their own rules.

The Public Finance Management Act requires payment within 30 days of a valid invoice, yet this law is ignored year after year. Scopa’s recommendations, such as pro-forma invoicing, action plans, and even deduction-at-source models, make sense. Unless there are real consequences for departments that continue to avoid their obligations, this cycle of debt and denial will continue.