Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Jose Coetzee and Sesotho soundbite by David Masoeu MPL
A Rule 52 question submitted to Setsoto Local Municipality has revealed that national and provincial government accounts owe the Municipality a staggering R45.97 million in unpaid municipal accounts.
According to the detailed account information supplied by the Municipality, the debt is made up as follows:
- Provincial Government debt: R38,104,856.06
- National Government debt: R7,868,835.83
- Total Government debt: R45,973,691.89
This means that more than 82% of the outstanding government debt is attributable to provincial government accounts.
The figures are particularly concerning when Setsoto continues to face serious financial and service-delivery pressures. Every rand that remains unpaid is money that should be available to maintain infrastructure, provide basic services and improve the Municipality’s financial position.
What is even more alarming is the Municipality’s response regarding debt collection.
The Municipality has confirmed that no formal notices have been issued in respect of these government arrears and that no legal action has been initiated.
Instead, the Municipality states that quarterly engagements are taking place with National and Provincial Departments of Public Works through the Revenue Managers’ Forum convened by Provincial Treasury. Government departments have indicated that their adjustment-budget processes should be concluded by the end of October 2026, with additional funding expected during November or December 2026.
Most concerning, however, is that the Municipality anticipates that the reconciliation and settlement process relating to the arrear debt will only commence from January 2027.
Residents and businesses cannot reasonably be expected to carry the financial burden of the Municipality while organs of state are allowed to accumulate tens of millions of rand in arrears without formal debt-collection action.
The detailed spreadsheet supplied with the response also demonstrates that this is not merely a recent billing problem. Significant amounts are reflected in the older debt-ageing categories, while millions of rand are also reflected as interest on government accounts.
The largest portion of the debt lies with provincial departments. The municipal information indicates approximately:
Provincial Departments
- Education – R13.50 million
- Health – R8.62 million
- Public Works, Roads and Transport – R7.00 million
- Agriculture – R6.35 million
- Sport, Arts and Culture – R2.63 million
National Departments
- Correctional Services – R3.78 million
- SAPS/Police – R2.65 million
- Justice and Constitutional Development – R1.34 million
These amounts cannot simply be treated as numbers on a spreadsheet.
Government has a responsibility to pay municipalities for services rendered. Failure to do so directly affects the Municipality’s ability to deliver services to ordinary residents.
It is unacceptable that Setsoto residents are expected to pay their municipal accounts while government departments collectively owe almost R46 million, with the Municipality admitting that it has issued no formal notices and instituted no legal proceedings.
In a previous response to a Rule 52 question submitted in 2024, the Municipality already confirmed that substantial government debt was outstanding and that regular engagements were taking place with government departments to recover these amounts. At the time, total outstanding government debt stood at approximately R25.89 million. More than two years later, that debt has increased to almost R46 million. The DA will therefore demand answers from the municipal manager on what tangible results these engagements have produced, why the debt has continued to escalate, and whether the Accounting Officer complied with section 64(3) of the MFMA by notifying National Treasury where organs of state were regularly more than 30 days in arrears.
We will request the dates on which these arrears were reported, copies of the relevant correspondence, and details of any response or intervention received from National Treasury, and we will further escalate the matter through the legislature and demand urgent intervention.
We will further insist that Council receives regular reports setting out amounts recovered, outstanding balances, payment arrangements and steps taken against departments that fail to honour their commitments.
R45.97 million is not insignificant debt. It represents money that belongs to the people of Setsoto and should be working for the people of Setsoto.