Residents, businesses called to honour obligations as municipalities strain under R60bn in unpaid debt

A call has been made to residents, businesses and government departments to ‘fufil their financial obligations’ and pay for services rendered by municipalities.

The plea was made by Salga KZN, which has warned that non-payment hampers service delivery.

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“The South African Local Government Association (Salga) expresses deep concern over the escalating municipal debt in KZN, which now exceeds R61.2-billion.

“This mounting debt poses a significant threat to the financial sustainability of municipalities and the uninterrupted delivery of essential services to residents.”

Broken down, R44.2-billion is owed by households, R11.9-billion by commercial entities, and government departments at R4.1-billion.

“The substantial debt owed by households and commercial entities underlines the urgent need for effective revenue collection strategies.

“Notably, government departments’ arrears have reached unprecedented levels, further straining municipal operations,” Salga stated.

“Municipalities depend on revenue from service payments to fund operations and infrastructure maintenance.

“The current debt levels have forced some municipalities to secure loans to meet financial obligations, leading to increased borrowing costs and potential delays in service provision.”

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