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Msunduzi Municipality faces financial crisis as Mpac demands answers
The Mercury
|October 14, 2025
THE Mpac committee of the Msunduzi municipality is demanding answers from the municipality regarding the financial crisis faced by the council, including a serious cash crunch.
The municipal public accounts committee (Mpac) has requested that the municipality's administrative team provide a detailed report on its plan to address the cash crunch that has left the city with just one month of cash coverage. Additionally, the committee has demanded an explanation of the financial challenges that have led to delays in the municipality receiving debt relief from its Eskom debt.
The committee expects to receive this report by the end of November. A recent Mpac report detailed the challenges faced by the municipality, highlighting several issues that are jeopardising its financial stability, including excessive spending on overtime.
The report found that cash coverage in the municipality stands at one month, while treasury regulations state that it must be at least three months to cover the municipality's operations in case of a crisis where it is unable to collect any revenue.
This story is from the October 14, 2025 edition of The Mercury.
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