Stats SA reports reveal that municipal debt is double that of what South African taxpayers owe.
Each year the outstanding amount owed to municipalities increases as residents struggle under economic strain. The debt owed to the 257 municipalities according to the latest financial census in 2018 is R72.4-billion, of which two-thirds is owed for municipal services.
The Citizen stated that the Financial and Fiscal Commission (FFC) reported that the bulk of municipal consumer debt consisted of non-payment for property rates, fees or services such as water, sanitation, electricity and refuse removal while the balance was made up of traffic fines and rental housing payments.
Municipal debt outstanding to creditors is around R150-billion.
Many municipalities do not have a collection strategy in place which is causing the steady increase.