The ANC-led Free State government is unable to pay its debts to municipalities in the province.
This was revealed by MEC of public works and infrastructure Dibolelo Mance in the legislature.
She was answering questions by DA provincial leader Dr. Roy Jankielsohn.
Mance said that the debt over five years is sitting at R1.006 billion.
Opposition demands the details
Jankielsohn asked: “How much does the department owe to municipalities and other service providers? How long has each debt been outstanding?”
In her response, Mance said: “The verified outstanding debt to municipalities amounts to R1,066 billion at the end of June 2024. The verified outstanding debt relating [to] utilities [and] to other service providers amounts to R3.793 million as of the end of June 2024.”
She also said her department was unable to negotiate a payment plan to settle this debt due to insufficient funding.
Municipalities want their money
“Municipalities want the department to commit to paying current accounts plus a portion of arrears,” she said.
Free State municipalities have failed many communities when it comes to service delivery. What has exacerbated their problem is that they are also owed by other departments as well as the provincial government.
In Maluti-A-Phofung, Matjhabeng, Masilonyane, Metsi Maholo, and the City of Mangaung, among others, service delivery has plummeted. The blame for these failures has also been attributed to the provincial government.
Freedom Front leader and Free State MPL Armand Cloete also wanted his pound of Mance’s flesh.
FS government accused of failing the citizens
He said it was of serious concern that the local government failed to deliver for citizens of the province.
“While sewage runs down the streets, water leakages result in massive losses, roads are crumbling, and critical housing projects are left unfinished, Free State municipalities have forfeited a staggering total of R3,8-billion in conditional grants over the last eight financial years. These funds, which were specifically earmarked for addressing infrastructure crises, have been returned to the National Treasury,” said Cloete.
He said Mangaung Metro had forfeited more than R1,9-billion, Ngwathe R247 million and Matjhabeng R200-million.
“These forfeited grants could have made a significant difference to infrastructure development, water and sanitation services, continuing service delivery, and even economic growth. Free State municipalities have demonstrated time and again that project management fails under ANC leadership. The culture of forfeiture in the Free State is out of control, seeing as the provincial government also had to return R1,3 billion to the National Treasury in the last ten years. These grants were specifically meant to improve poor communities’ quality of life,” said Cloete.
Five municipalities owe R10m for water
Apart from municipalities being owed over a R1-billion by the provincial government, five of the Free State municipalities also owe bulk water supplier Vaal Central Water (VCW) R10 billion.
When VCW met with the provincial portfolio committee on cooperative governance and traditional affairs, it said the debt exposed it to serious cash-flow problems.
VCW was formed after then Minister of Water and Sanitation Senzo Mchunu disestablished Sedibeng Water. He then transferred its assets, staff, and liabilities to the Magalies Water Board and the then Bloem Water Board.
The enormous debt originates in the merger of Bloem Water and Sedibeng Water, which was insolvent, in 2022.
Matjhabeng owes R6.9 billion, Kopanong R768 million, Mangaung Metro R921-million, Nala R404-million and Mantsopa R3,7-million for water alone.
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