– Provincial government owes municipalities almost R1 billion
– Government cannot demand financial discipline while failing to meet the same standards itself.
– DA demands a payment plan and accountability for outstanding municipal debt
The Democratic Alliance (DA) in Limpopo will call on the MEC for Provincial Treasury, Kgabo Mahoai, to urgently account before the Portfolio Committee on Provincial Treasury for the provincial government’s failure to settle almost R1 billion owed to municipalities for rates and municipal services, and to table a clear, time-bound payment plan. Every rand withheld from municipalities is money that cannot be used to repair roads, maintain infrastructure or deliver basic services.
According to Limpopo Provincial Treasury’s most recent State of Municipal Finance report, provincial departments owed municipalities R998.201 million as at 31 March 2026. The report also records that National Treasury had already warned Limpopo that the Province’s equitable share could be withheld because of its failure to honour these obligations.
National Treasury is demanding better financial discipline from municipalities and has already withheld equitable share allocations from five Limpopo municipalities for persistent financial non-compliance. Yet Provincial Treasury’s own report shows that the provincial government is itself undermining municipal finances by failing to pay almost R1 billion that it owes. The Province cannot credibly demand compliance from municipalities while failing to comply with its own financial obligations.
The ANC-led provincial government cannot demand financial discipline from municipalities while failing to meet the same standards itself. By failing to pay its own municipal accounts, it is directly contributing to Limpopo’s municipal finance crisis.
Municipalities depend on rates and service charges to keep water flowing, maintain roads, repair electricity networks and collect refuse. When the provincial government fails to pay what it owes, it weakens municipalities’ ability to deliver those services.
It is unconscionable that residents are expected to pay municipal accounts on time while provincial departments fall almost R1 billion into arrears. Every household knows that if you do not pay your accounts, there are consequences. Government should be held to the same standard.
Provincial Treasury identifies the Department of Public Works, Roads and Infrastructure (DPWRI) as accounting for a substantial portion of the debt. It also records that municipalities claim approximately R528.9 million in unpaid rates because many provincial properties have still not been registered in the name of the Provincial Government.
Provincial Treasury further acknowledges that weaknesses in data management, account reconciliation and property records continue to delay the resolution of these debts, leaving municipalities without revenue needed to provide essential services.
The DA will therefore request the MEC for Provincial Treasury to table before the Portfolio Committee on Provincial Treasury:
- A municipality-by-municipality breakdown of provincial government debt;
- A department-by-department payment plan with firm deadlines;
- The status of disputed municipal accounts;
- Progress in registering outstanding provincial properties; and
- Steps to ensure departments comply with their legal obligation to pay municipal accounts on time.
Every rand owed to municipalities should be fixing potholes, keeping taps running, maintaining electricity infrastructure and collecting refuse.
If the ANC-led provincial government is serious about fixing local government, it must begin by paying its own bills. The people of Limpopo deserve a government that leads by example. It is time for the provincial government to put its money where its mouth is.