supersunbird
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Nearly half of the municipalities got their political councils to approve unfunded budgets in the 2019 financial year, meaning they planned to spend money they did not have and would not get.
Predictably, the result was chaos.
The report quotes figures from the SA Municipal Workers’s Union (Samwu) showing that 30 municipalities are currently unable to pay salaries, and many more that cannot pay suppliers such as Eskom.
Read: SA municipalities face collapse, index shows
It is common knowledge that Eskom is financially vulnerable. In turn, Eskom says part of its financial problems are that local municipalities are unable to pay their debts to the utility, even in cases where residents have paid their electricity accounts. At the time of the writing of the Pari report, municipalities owed Eskom more than R34 billion.
Finance Minister Tito Mboweni called on Eskom to collect these debts by making it one of the conditions of the recent bail-out by taxpayers.
More at: https://www.moneyweb.co.za/news/south-africa/the-problem-of-failing-municipalities/