Rising debt places municipal services under severe strain

KZN MEC for Co-operative Governance and Traditional Affairs (Cogta), Sipho Hlomuka, is concerned about the steep increase of ratepayers’ debt at the province’s municipalities.

Hlomuka said latest audited figures released by Cogta indicate that KZN municipalities saw a R3.47-billion debt increase between the 2018/19 and 2019/20 financial years.

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‘The debt grew from R23.8-billion to R27.2-billion during this period, which represents a 14.45% increase,’ said Hlomuka.

According to the MEC, the problem is partly because of the deteriorating economic conditions caused by the Covid-19 pandemic, which has seen households and businesses across the province struggle to pay for municipal services.

This, he said, places municipalities in a precarious position as they have to continue providing essential services such as waste removal, water, electricity and sanitation in an environment of reduced revenue.

‘The department is rolling out measures aimed at assisting municipalities to recover debt,’ said Hlomuka.

He also commended municipalities proactively dealing with consumer debt by providing debt relief to ratepayers by getting them to commit to a payment plan without charging interest. Jozini and Mandeni municipalities are among those identified for support, specifically relating to consumer debt relief during the 2021/22 financial year.