Local government has become more dysfunctional, according to a report by National Treasury tabled to Parliament’s Appropriations Committee last week.
The report states 17% of all municipalities are considered to be in crisis; 44% had tabled unfunded budgets; 59% are bankrupt and insolvent; 68% are in financial distress; and 85% meet the Municipal Finance Management Act criteria for financial problems and crises.
In a press release, the DA said municipal debt to Eskom has ballooned to R39,8 billion, while municipal debt to water boards has reached R15,1 billion.
