DA demands solutions as government debt drowns municipalities

Issued by Gizella Opperman, MPL –
16 Sep 2026 in Press Statements

The Democratic Alliance in the Northern Cape reiterates our request for a joint briefing to find a permanent solution for the persistent non-payment of municipal accounts by provincial departments.

As of March 2026, the Northern Cape Department of Roads and Public Works owed local municipalities more than R608 million. It is unsustainable and impractical for local governments to sit with millions on the books that are never paid into the bank, because then there is never enough money to fix dilapidated roads, repair broken infrastructure, and provide adequate services to residents. As of May 2026, for example, Sol Plaatje Local Municipality was owed more than R605 million by various government departments, of which over R503 million (87%) was owed for more than 90 days.

What makes matters worse is that the department, by its own admission, only budgeted R110 million for the payment of municipal accounts in the current year. No other ratepayer would be allowed to pay only 18% of his or her account, as and when he or she wishes, and financial shortfalls on local level are an inevitable consequence of this budgeting choice.

It emphasises the importance of fixing broken billing systems and enforcing fair, firm credit control in all municipalities. Municipalities must bill all consumers accurately and ensure that users pay their bills on time and in full, especially bulk consumers like departments that use significant amounts of water and electricity. A culture of non-payment, including non-payment by provincial government departments, erodes local economies and compels honest ratepayers to subsidise those who refuse to pay. Perhaps it is time for municipalities to disconnect electricity to the department’s head and district offices until municipal accounts are settled.

We have previously requested that the Northern Cape Provincial Legislature’s Portfolio Committee on Cooperative Governance convenes a meeting with the department, the provincial treasury, and the Premier’s Office to present long-term solutions for this financial challenge.

Ultimately, it seems as if it is only the DA that has a real interest and feasible plans for making local economies work for all.