Madibeng is one of the North West municipalities responsible for the province’s R5 390 billion Eskom debt.
“In a pursuit to alleviate this burden on municipalities and address Eskom’s financial and operational challenges, National Treasury has introduced the Municipal Debt Relief Programme. Municipalities were duly briefed between April and May 2023 of the existence of this programme and what it requires of them to be eligible for the dispensation,” the MEC for North West Cooperative Governance, Human Settlements and Traditional Affairs, Nono Maloyi said during the provincial budget vote last week.
The Department has instructed the municipalities to adopt a payment schedule for Eskom by 31 May 2023, and manage the municipal budget and financial ring-fencing procedure within the 2023/24 MTEF budget. They also have to initiate payment of bulk purchases in full to prevent arrears accrual.
Madibeng has maintained its disclaimer status for the seventh consecutive year, according to the audit outcome in municipalities for 2021/22.
Maloyi said the employment of consultants in municipalities has become a rule rather than an exception to the rule. “Their value in the municipal business processes is not worth the resources spent on them. The financial statements they produce are by far shoddy and not worth the paper they appear on.”