Municipalities Brace for R14bn Revenue Loss as COVID-19 Bites

Lucas Ledwaba

Already crippled by non-payment of services and poor governance – municipalities are set to endure further revenue losses resulting from the COVID-19 lockdown.

The SA Local Government Authority said in a presentation outlining its respond to the covid-19 pandemic to parliament this week they are expecting a 5% drop in payment rates which will cost an estimated R14 billion.

Local government has been the focus of attention for poor delivery government in the current financial year which resulted in President Cyril Ramaphosa launching the Khawuleza District Development Model.

The model which will be applied across all 44 districts and eight metros effectively allows national government to get more hands on in implementation of projects at municipal level.

The intervention came at a time when audit results showed a further decline in performance by municipalities.

Last year auditor-general Kimi Makwetu revealed that the number of clean audits in municipalities