The Bushbuckridge local municipality in South Africa faces a financial crisis due to unpaid debts of approximately R1 billion from two provincial government departments. The municipality has accused the Department of Public Works, Roads and Transport and the Department of Rural Development and Land Reform of failing to settle their accounts, while the departments claim inaccuracies and deliberate inflation of billing amounts. The situation has sparked calls for investigation and a commitment to resolving the dispute to ensure uninterrupted service delivery in the municipality.
A serious financial dispute has arisen between the Bushbuckridge local municipality and two provincial government departments , who collectively owe the municipality approximately R1 billion in unpaid bills. Municipal spokesperson Fhumulani Thovhakale revealed that the Department of Public Works, Roads and Transport (DPW) accounts for the largest portion of the debt, owing R675 million, while the Department of Rural Development and Land Reform owes over R327 million.
Thovhakale emphasized that these outstanding payments severely impact the municipality's ability to provide essential services to its communities and impair its overall functionality. He stated that the municipality would persist in enforcing its credit control and debt management policies to recover the owed funds. \The Democratic Alliance (DA) expressed its strong condemnation of the government departments' failure to settle their municipal debts, arguing that it directly compromises the municipality's capacity to deliver crucial services, particularly water and road maintenance. DA leader in Bushbuckridge, Tersia Marshall, demanded immediate engagement between the departments and the municipality to formulate a sustainable debt repayment plan. She further insisted on consistent and timely payment of all future municipal accounts to prevent further debt accumulation. Marshall also insisted on a comprehensive written explanation from the departments outlining the reasons for non-payment and the concrete steps they are taking to address this financial oversight. \However, the Department of Public Works and Infrastructure (DPW) refuted the claim, stating they require proof of the alleged debt from the municipality before confirming its validity. A department spokesperson indicated that they consistently pay bills and invoices that are accurately billed. The department also cited a broader issue of municipalities, including Bushbuckridge, potentially inflating property sizes to artificially increase billing amounts for financial gain. They alleged that municipalities have, in some instances, inflated the size of properties, citing examples like 200m2 plots being billed as 220,000m2 and two-hectare farms being billed as 50 or 100 hectares. They further suggested this practice is prevalent nationwide and not limited to Mpumalanga.\Political analysts have called for thorough investigation into the matter. Goodenough Mashego urged authorities to determine how the departments failed to settle their accounts and why some dispute the amounts owed. He pointed out the detrimental impact of non-payment on service delivery, particularly in underfunded municipalities like Bushbuckridge. Professor Ntsikelelo Breakfast echoed the call for resolution, emphasizing the imperative for government entities to collaborate and prioritize service delivery. He highlighted that such disputes can stem from internal power dynamics and often hinder the smooth functioning of government.
Bushbuckridge Municipal Debt Government Departments Service Delivery Financial Crisis
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