14 KZN municipalities fail to pay R225m in third-party contributions

Fourteen municipalities in KwaZulu-Natal (KZN) have failed to make third-party payments and have now incurred escalated debts.

This emerged during a meeting convened by the Department of Cooperative Governance and Traditional Affairs (COGTA), which was attended by mayors and municipal managers from all 54 KZN municipalities.

The state of finances meant for service delivery was one of the key topics on the agenda.

With the looming local government elections, the state of municipalities across the country is crucial.

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According to the KZN COGTA department, 36% of the province's municipalities are facing financial problems, where operating expenditure exceeds grants received and municipal revenue.

iLembe District, Nongoma, and uPhongolo, among others, have failed to pay medical aid, pension funds, or Unemployment Insurance Fund (UIF) contributions, amounting to over R225 million.

COGTA MEC Thulasizwe Buthelezi said a number of the issues would be addressed at the special meeting.

“I am immediately convening a special meeting with all municipalities that are here to focus on disaster readiness, municipal stability and governance, but we will also consider broader issues that influence government functionality,” said Buthelezi.

Buthelezi said officials from all 14 districts and local municipalities would have to account for the state of their finances.