Dr. Zweli Mkhize, Chairperson of Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs, says government is concerned by the rise in municipal debts nationwide.
Last week, the Standing Committee on Public Accounts reported that municipalities collectively owe Eskom R94 billion.
Speaking at a parliamentary briefing on Monday, Mkhize singled out the troubled Maluti-a-Phofung Municipality in the Free State as one of the worst offenders, owing Eskom R9 billion.
“This poses a serious threat to the utility’s sustainability,” Mkhize said.
He further disclosed that the Maluti-a-Phofung Local Municipality is currently bankrupt, operating with a deficit of R1.5 billion, a situation projected to take 20 years to rectify.
“The Mangaung Metro and the City of Tshwane are among the only two out of 74 municipalities whose financial positions were so dire that significant doubt was cast on their ability to continue operations,” Mkhize noted.
“Mangaung Metro has been under national intervention
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