- Finance Minister Nhlanhla Nene has revealed that 112 municipalities don’t have enough money to carry out their service delivery targets
- The finance minister revealed that over 40% of local municipalities have unfunded budgets, which means they don’t have enough money to cover expenses
- The majority of these municipalities are in Limpopo, followed by the Northern Cape and KwaZulu-Natal
Finance Minister Nhlanhla Nene has revealed that more than 40% of South African municipalities don’t have enough money to meet their service delivery targets. Nene said 112 municipalities have unfunded budgets, which means they don’t have enough money to cover their expenses.
Nene made the startling revelation in a written Parliamentary reply to the Democratic Alliance (DA). The finance minister said the 112 identified municipalities would not have enough income to offset their expenditure by the close of the financial year on 30 June.
Nene’s answer showed that the majority of these municipalities were in Limpopo, followed by the Northern Cape and KwaZulu-Natal.
Briefly.co.za gathered that Nene also revealed that of the 112 municipalities only 14 had approved financial recovery plans.
Nene said he was looking into various mechanisms which would ensure that municipalities did not draw up and approve budgets which they could not afford.
The DA said this showed that municipalities battled to collect revenue from ratepayers, had smaller than expected revenue basis or simply were spending money which they knew they did not have.
The DA’s Kevin Mileham said: “The minister is obligated to intervene and, sadly, there's been a complete lack of intervention on the part of provinces and national executives of Cabinet to take the necessary steps to ensure financial stability in these municipalities. “
The finance minister said he would be meeting with the minister of cooperative governance to work on a strategy which would allow the national government to intervene in cases where local municipalities continued to adopt unfunded budgets.
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