A report by auditor-general Tsakani Maluleke says Matjhabeng's debt could prevent it from functioning.R16bn of debt, something the auditor-general warned could prevent it from functioning.
The AG raised concerns in a 2021/22 report about the municipality’s debt exceeding its assets by R8.4bn and highlighted that it also incurred a deficit of R1bn.Matjhabeng owes Eskom and Bloemwater R5bn each. It is fourth-highest on the list of municipalities indebted to the power utility.’s leadership said it could turn things around despite five consecutive years of AG audit reports warning of deteriorating finances.
However, its overall debt was R16bn and it was making monthly payments to creditors to chip away at this, he said, adding that nonpayment for municipal services and outsourcing thereof were responsible for Matjhabeng's troubles. The municipality was now embarking on an aggressive revenue-collection campaign for financial recovery, Tlali said.“We also have other revenue-enhancement strategies in place to ensure financial recovery. We have made several key appointments of senior managers to bring financial stability to this municipality.”
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Free State municipality hopeful of financial recovery after AG concernsMatjhabeng in Free State believes it can turn around its financial trajectory despite R16bn of debt, one the auditor-general (AG) says could prevent it from functioning.
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