The ANC government is encumbering municipalities by allowing provincial governments to owe municipalities billions of rands for electricity and water supply as well as rates and levies.
The Free State provincial department is the biggest culprit in the country when it comes to outstanding debt to the respective municipalities with a staggering 25% of the total outstanding amount of R3.7 billion. The amount due thus amounts to nearly R919 million.
The Free State is already burdened with the poorest local government in the country; three municipalities have been placed under administration in the last 12 months and there are regular threats of load shedding coming from Eskom due to the fact that municipalities are not honouring the payment agreements entered into with the electricity supplier. Municipalities and the provincial government cannot expect consumers to keep up to date with their electricity accounts if the government itself is not paying its accounts.
The provincial government is supposed to set an example for local government and therefore it is unacceptable that the provincial departments have such vast amounts outstanding.
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