Limpopo's municipalities are owed R1.2 billion by government entities.
Limpopo municipalities are owed more than R1 billion by government departments and state-owned entities in unpaid bills.
Money owed to municipalities for services
As at 30 June 2025, national and provincial departments, and state-owned entities collectively owed Limpopo municipalities R1 231 098 658 for both property rates and municipal services.
According to a report released by the National Treasury on local government revenue and expenditure for the third quarter of the 2024-25 financial year, debts owed to municipalities amount to R416.1 billion, compared to R347.6 billion in the same period in 2023-24.
“A total amount of R10.8 billion or 2.6% has been written off as bad debt. The largest component of this debt relates to households and represents 72% or R299.5 billion (73% or R253.6 billion in the same period in 2023-24 financial year),” said National Treasury.
“The government debt accounts for 6% or R24.9 billion (R21 billion reported in the same period in 2023-24) of the total outstanding debtors. Total outstanding creditors owed by municipalities as at 31 March 2025 amount to R131.8 billion, an increase from R106.7 billion reported in the same quarter in 2023-24. R111.8 billion or 84.8% has been outstanding for more than 90 days.”
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Treasury singled out the Free State (94.4%), Mpumalanga (93.9%), the Northern Cape (93.8%) and the North West (84.4%) as provinces with the highest percentage of outstanding municipal creditors for more than 90 days.
Municipal debt affects service delivery
In response, the DA in Limpopo has called on the province’s premier, Dr Phophi Ramathuba, to effect sustainable repayment plans for the billions owed by government to Limpopo municipalities.
In a statement, DA provincial chair and Member of the Provincial Legislature (MPL) Lindy Wilson said the lion’s share of the debt in Limpopo was owed by Rural Development at R503 043 306, the provincial public works at R482 457 382, and the provincial department of education at a staggering R131 629 893.
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Wilson said failure to settle municipal debt debilitates the ability to deliver essential services, specifically water and electricity infrastructure maintenance. She said R302 million was owed to the Polokwane municipality, which is currently in the midst of an unprecedented ongoing water crisis.
“Payment of government debt will greatly assist to repair and maintain the collapsed water infrastructure in the five different regions of Limpopo,” she said.
She added that if government entities owe money to municipalities, their services can be cut.
“The Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA) allow municipalities to terminate services to government entities if their bills are not settled within 30 days. We call on Premier Ramathuba to ensure consistent and timeous payment of all future municipal accounts to prevent further debt accumulation,” said Wilson.
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