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Party turns up heat on municipality over spiralling debt crisis

Danie van der Lith|Published

The DA has called for urgent action over unpaid debt crippling Phokwane Municipality.

Image: File

THE DEMOCRATIC Alliance (DA) in Phokwane is demanding swift, decisive action from the local municipality to recover millions in outstanding debt, warning that the town’s financial stability - and with it, essential services - could be at risk if the crisis continues.

Councillor Lean le Roux has formally requested that the municipal manager (MM) brief council on a plan to claw back the ballooning arrears. 

According to Le Roux, councillors alone owe more than R1.4 million, with six councillors each sitting on balances of between R100,000 and R200,000. Government departments and private entities add a further R21.4 million to the tab, including more than R6.8 million from the Northern Cape Department of Roads and Public Works and R2.3 million from Frances Baard District Municipality.

“The time has come for a multi‑pronged, strategic approach to debt collection,” Le Roux said. “If we fail to act, the municipality may soon be unable to pay its creditors, with devastating consequences for service delivery.”

Le Roux urged the MM to notify councillors who are more than two months in arrears and to arrange repayments through stop‑orders. He reminded the council that the Councillor Code of Conduct deems councillors in breach if their municipal accounts exceed three months’ arrears - a lapse he says could erode public trust and amount to dereliction of duty by senior officials.

To tackle the broader debt, Le Roux called for final notices to defaulters, disconnections of chronic non‑payers and rapid resolution of disputed accounts.

With 60,000 residents depending on Phokwane Municipality for basic services, the DA councillor warned that inaction could cripple the local authority.

Municipality responds

A spokesperson for Phokwane Municipality, Kgalalelo Letshabo, said several measures are already under way.

“Councillors who owe the municipality were requested to sign payment arrangements so deductions can be made directly from their salaries. The matter was announced in council, and councillors understood why it needed to be done.

“To improve cash flow, we are enforcing credit control in line with the approved policy, which includes disconnections and summonses.

“We are also implementing the cost-containment policy, reviewing all contracted services, prioritising service delivery expenditure, and ensuring value for money while collecting what is due to the municipality.

“The report referenced by the DA was tabled by the administration, with the chief financial officer presenting it to council.”

As the municipality rolls out these measures and the DA maintains its watchdog pressure, residents will be closely monitoring whether the promised deductions, stricter credit control, and cost‑containment drive translate into real cash recovered - and, ultimately, uninterrupted delivery of the basic services on which the people of Phokwane rely every day.

Party turns up heat on municipality over spiralling debt crisis