Municipalities across the country are owed a whopping R165.5 billion and some of it dates back to the apartheid-era consumer boycotts.
The amount was R165.5bn by the end of June this year and increased from R143.2bn from the previous financial year.
"Whereas municipal debt to Eskom (for electricity) and water boards and the Water Trading Entity (for water) sits at R25bn and R14.9bn respectively, debt owed to municipalities for municipal services already delivered, is currently sitting at a whopping R165.5 billion as at 30 June 2019 (compared to R143.2bn reported in the same quarter of the previous financial year),” the SA Local Government Association (Salga) announced on Thursday.
According to Salga, the largest component of debt relates to households which owe R118.6bn.
The government’s outstanding debt represents 6.2% or R10.3bn of the total debt.