Gauteng municipalities collapsing
2 July 2018
The shocking revelations made last Friday in the Gauteng Legislature by the Gauteng MEC for Local Governance, Mr Uhuru Moiloa, are a clear indication that Gauteng municipalities are collapsing and that many others will soon follow in the footsteps of the Emfuleni Local Municipality, which was placed under provincial administration.
Residents who do not pay for services owe the municipalities in Gauteng around R56,6 billion and R46 billion of this is more than 90 days overdue.
Of the outstanding R56,6 billion, businesses owe R7,7 billion and households R46,4 billion. As a result, the municipalities are experiencing cash-flow problems and are thus unable to pay the accounts of service providers, like Eskom and Rand Water.
This tendency worries the FF Plus and the party had cautioned the Gauteng government in 2015 already to implement measures that will ensure that all residents pay for their municipal services seeing as municipalities simply cannot afford to deliver services free of charge.