Govan Mbeki Municipality hosts LED forum in Secunda amid R7b debt crisis
Mayor says 49% of water pumped to GMM is lost, largely due to rapid expansions of 45 informal settlements.
The Govan Mbeki Municipality convened its Local Economic Development (LED) Forum meeting at the Lillian Ngoyi Centre in Secunda on February 19, where Executive Mayor Nhlakanipho Zuma delivered a sobering assessment of the municipality’s financial health.
Zuma revealed that the municipality is currently operating under a technically unfunded budget and remains entrenched in a severe debt cycle. He disclosed that outstanding debt owed to Eskom and Rand Water has surpassed R7b.
“While the municipality is burdened by debt, it is also owed roughly R4.5b by government departments, residents, and businesses,” Zuma said.
He further highlighted that water losses have reached 49%, largely attributed to the rapid expansion of 45 informal settlements.
With more than 14 000 registered indigent households, the municipality is compelled to write off substantial amounts of debt annually to continue providing basic services.
Zuma expressed disappointment at the lack of presentations from big business during the forum session. He stressed that restoring the municipality is not solely the responsibility of local government but a collective mandate requiring active and transparent participation from all sectors.
“Members of the forum must present on behalf of their entire sector rather than individual company interests. Our local economy must prioritise the 400 000 residents of the municipality,” he emphasised.
To strengthen accountability and collaboration, Zuma announced that the LED Forum will now convene every two months to accelerate efforts toward economic stability and institutional recovery.
The mayor issued a mandatory directive for State-Owned Entities (SOEs), parastatals, sector departments, and big business to attend the next sitting scheduled for the second week of March.
“Every sector must demonstrate how its Social Labour Plans (SLPs) and corporate investments align with the municipality’s Integrated Development Plan (IDP) priority needs.
“They must provide tangible data on local employment opportunities and show how their operations directly uplift the local community,” Zuma stated.
He concluded by thanking stakeholders who continue to support the municipality’s restoration efforts.
“Through the LED Forum, we are committed to ensuring that every sector contributes meaningfully to a sustainable and prosperous municipality,” Zuma concluded.
Statistic on GMM’s finances
• Debt to Eskom and Rand Water surpasses R7b
• Outstanding debt by government departments, residents, and businesses is roughly R4.5b
• 49% of water pumped to GMM is lost, largely due to rapid expansions of 45 informal settlements.
• GMM has more than 14 000 registered indigent households where substantial amounts of debt have to be written off annually
• GMM’s population is about 400 000 people.
