AG not optimistic about the future of 247 struggling municipalities

Auditor-General Tsakani Maluleke has cast doubt that 247 municipalities will continue operating optimally in future due to their dire financial positions.

Maluleke delivered the 2020/2021 audit outcomes of local government on Wednesday.

She said poor billing systems and revenue collections were putting pressure on the ability of municipalities to pay salaries and deliver services to communities.

The Auditor-General said R41.28 billion in debt was written off by municipalities in the financial year under review.

Maluleke said the cash flow challenges had a knock-on effect on the entire municipal ecosystem.

“You’ve also got a number of municipalities not being able to maintain their infrastructure, they don’t plan for maintenance, they don’t even budget for maintenance because they don’t have the cash to pay for maintenance. And what happens is that those assets deteriorate over time and have the detrimental impact on the ability to deliver water, to fix roads, to deliver sanitation and even electricity.”

-EWN

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