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Nene: 112 municipalities without cash to carry out services

It means the municipalities won't have enough money to meet their expenditure when the financial year ends on 30 June.

FILE: Finance Minister Nhlanhla Nene. Picture: GCIS

CAPE TOWN – It's emerged that more than 40% of municipalities don't have the money to carry out service delivery plans for the current financial year.

In a written Parliamentary reply, Finance Minister Nhlanhla Nene has revealed that 112 municipalities have unfunded budgets.

It means the municipalities won't have enough money to meet their expenditure when the financial year ends on 30 June.

The majority of municipalities which won't have enough money to cover their expenses, are in Limpopo, followed by the Northern Cape and KwaZulu-Natal.

In his reply to the DA, Nene has also revealed that only 14 municipalities have approved financial recovery plans.

The DA's Kevin Mileham says it’s evident that municipalities are either battling to collect revenue from ratepayers, have a revenue base that is not big enough, or are not adequately controlling their expenditure.

“The minister is obligated to intervene and sadly there's been a complete lack of intervention on the part of provinces and national executives of Cabinet to take the necessary steps to ensure financial stability in these municipalities.”

Nene says that he will also be considering measures to ensure municipalities do not draw up budgets they can't afford.

He says he will be meeting with his counterpart at Cooperative Governance to intervene where municipalities continue to adopt unfunded budget plans.