eThekwini government debt rises to R2.6bn as councillors demand tougher action
Councillors and ratepayers are calling for tougher collection measures after an eThekwini report recorded R2.6bn owed by government departments and state entities.
Councillors in eThekwini, South Africa, are demanding stricter measures against government departments that owe the municipality millions of rand, amid growing arrears. The municipal consumer-debt report reveals that total government and parastatal debt has reached R2.6 billion, prompting calls for tougher action. Most debt is owed by households, with a government department's debt increasing by R700 million between May and July, reaching R2.6 billion.
A parastatal owes over R500 million, while the national government owes about R101 million. The Ingonyama Trust owes R354 million. The report highlights that government debt is straining the municipality's cash flow, service delivery, and financial sustainability. Councillors argue that government entities should be treated equally to residents with unpaid bills, as disconnecting them would not solve the problem.
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