– Provinces owe municipalities R15 billion.
– Treasury must force provinces to pay.
– DA welcomes Godongwana’s step in right direction.
The DA welcomes National Treasury’s decision to invoke section 216(2) of the Constitution and potentially withhold provincial equitable share allocations from provinces that continue to default on payments owed to municipalities.
For years, the DA has argued that accountability in public finance cannot be selective. Government departments cannot expect residents and businesses to pay their municipal accounts while the state itself accumulates billions in unpaid debt.
According to Treasury, provincial departments owe municipalities almost R15 billion, with more than R8.5 billion outstanding for over a year. Treasury correctly describes this as an “institutionalised culture of non-payment”.
In many struggling municipalities, provincial government departments are among the largest debtors. Recovering these funds could provide immediate relief to municipalities battling to maintain roads, keep water flowing, and keep the lights on.
Consequence enforcement must mean more than strongly-worded letters. Provinces that fail to meet their legal obligations must face real consequences.
Treasury has provided provinces with an opportunity to rectify the situation. Where they fail to do so, the withholding of funds should proceed.