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Mafube municipality’s debt crisis: R1.5 billion owed, just 20% of bills collected

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The Select Committee on Cooperative Governance and Public Administration, focusing on Traditional Affairs, Human Settlements, and Water and Sanitation, has expressed concern that the Mafube Local Municipality’s poor rates and taxes collection hampers its ability to achieve the goals of the Section 139 (5) (a) and (c) intervention mandated by the provincial executive.

“We are deeply concerned that the municipality only collects 20% of service charges, leaving 80% uncollected,” said committee chairperson Mxolisi Kaunda.

“Financial recovery plans that are not anchored on a strong revenue collection base are futile, as financial resources from services charges are the bedrock of municipal cash flow. It is on this basis that we are extremely worried that the municipality only collects up to 20% of services charges which means that 80% of services are not charged.”

Following their initial visit to Free State municipalities to evaluate provincial interventions, the committee noted President Cyril Ramaphosa’s

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