Several of the municipalities are in dire financial distress. Some might be forced to use medical and pension funds to cover operational costs.The municipalities are on the brink of collapse. Despite national government’s turnaround strategy to among others employs skilled technicians and engineers.
The provincial treasury has painted a grim picture indicating that eight municipalities reported overdrafts and have a balance of below R10 000. It says this is not sustainable and would lead to non-payment of salaries and creditors including Eskom and water boards.
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