Msunduzi Municipality faces R2 billion debt crisis due to theft and non-payment

DEBT crisis in Msunduzi Municipality is worsening due to theft and non-payment for services, with the municipality now owing its key service providers close to R2 billion.

- THAMI MAGUBANE

Reports detailing the payments owed to Eskom and uMngeni-uThukela Water Board reveal that the municipality owes these two entities close to a billion rand each.

The details of the debt are contained in a report tabled before the city's Municipal Public Accounts Committee, which was presented at its recent meetings. City councillors have attributed the debt to the theft of water and electricity, estimating that this theft costs the municipality about R3 million each month.

Councillors have raised concerns about thousands of bypassed water and electricity meters in the city, which prevent the municipality from generating revenue from these services. They noted that city officials have failed to act against theft and non-payment, causing the city to accumulate this debt.

The municipality has been actively trying to collect what is owed by businesses and government entities, employing harsh tactics, including the disconnection of electricity to businesses and even schools.

The financial statement, including payment notifications contained in the report, shows that the municipality is making payments.