The Democratic Alliance in Limpopo calls on Premier, Phophi Ramathuba, to effect sustainable repayment plans for more than R1 billion rand owed by government to Limpopo municipalities.
As at 30 June 2025, national and provincial departments and state-owned entities collectively owed municipalities R1,231,098,658 for both property rates and municipal services.
The lion share of the debt is owed by:
Rural Development- R503 043 306
Provincial Public Works- R482 457 382
Provincial Department of Education- R131 629 893
Failure to settle municipal debt debilitates the ability to deliver essential services, specifically water and electricity infrastructure maintenance.
R302 396 147 is owed to Polokwane Municipality, currently in the midst of an unprecedented ,on-going water crisis. Payment of government debt will greatly assist to repair and maintain the collapsed water infrastructure.
The Public Finance Management Act (PFMA) and Municipal Finance Management Act (MFMA), allows municipalities to terminate services to government entities if their bills are not settled within 30 days.
We call on Premier Ramathuba to ensure consistent and timeous payment of all future municipal accounts to prevent further debt accumulation.