NCOP issues deadlines to Treasury over municipal debt and revenue reform

The National Council of Provinces (NCOP) has given the national treasury several deadlines to improve the financial performance of municipalities and to address debt owed to Eskom.

NCOP has also given the National Treasury an ultimatum to review the current formula used for the equitable share and how money is divided between departments, provinces, and municipalities.

It was considering the Division of Revenue Amendment Bill as parliament wraps up its business for the year.

The NCOP considered the DORA Bill, which details how money from the national revenue fund will be distributed among national departments and other spheres of government.

The select committee on appropriations presented the bill after its adoption by the committee.

But chairperson Tidimalo Legwase gave the national treasury a few deadlines to come up with solutions to systemic problems around finances.

"Furthermore, within 90 days, a strategy should be developed to address municipal revenue collection challenges, including indigent policies and tariff structures, and debt owed to Eskom and water boards. Finally national treasury should with Statistics South Africa and the South African Local Government Association within 120 days, present a plan to update the local government equitable share formula using the latest demographic data.

All provinces voted in favour of the DORA bill, which will be signed by the president before its full implementation.