SALGA sitting hears of need to review municipal funding model

SALGA sitting hears of need to review municipal funding model

Deputy Minister of Cooperative Governance and Traditional Affairs Dickson Masemola wants a review of the local government funding model. 

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Image credit: iStock (AJ Paulsen)

There is mounting concern over the levels of municipal debt. 

Municipalities around the country owe Eskom more than R70 billion, while municipal consumer debt stands at more than R300 billion.

Masemola delivered the keynote address at a two-day joint sitting of mayors and speakers hosted by the South African Local Government Association (SALGA) in Limpopo on Wednesday. 

Mayors and Council Speakers from the country’s 257 municipalities gathered in Polokwane to tackle issues affecting municipal governance and service delivery.

Masemola said any future funding model needs to make municipalities financially viable.

"In the immediate, viability depends on the trading service of the councils, whether they are able to get money or not.

"If people don't pay, Polokwane Municipality will have problems, Mbombela will have problems, Rustenburg will have problems, and so will Mangaung.

"That is why we are asking people to help our municipalities by paying for their own services," he said.

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