The National Treasury cut off equitable share payments to 15 broke municipalities in the North West for violating financial rules under Section 216 of the Constitution. The affected councils owe massive debts to water boards and pension funds, with one district alone sitting on R900 million in unpaid bills. Rustenburg, Madibeng, Matlosana, and a dozen other local and district municipalities got hit with the freeze after ignoring payment agreements and failing to submit proper budget plans.
The money usually covers salaries and basic services like water and garbage collection, and residents are sweating about what happens next during the holiday season. Treasury previously used this tactic to shake loose R460 million from deadbeat municipalities earlier in the year.
Officials held an emergency virtual meeting with municipal managers to figure out the recovery path, but councils need to prove they are paying current bills and sticking to debt repayment schedules before the cash starts flowing again.
The money usually covers salaries and basic services like water and garbage collection, and residents are sweating about what happens next during the holiday season. Treasury previously used this tactic to shake loose R460 million from deadbeat municipalities earlier in the year.
Officials held an emergency virtual meeting with municipal managers to figure out the recovery path, but councils need to prove they are paying current bills and sticking to debt repayment schedules before the cash starts flowing again.
