The eThekwini Municipality
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Councillors and ratepayers are calling for stronger action against government departments that owe eThekwini Municipality billions of rand, following concerns that they are treated with "kid gloves" while ordinary residents face service disconnections over much smaller debts.
The call follows the release of a municipal consumer-debt report, which shows that total consumer debt has ballooned by nearly R2 billion over the past three months and is approaching R50 billion. Most of the debt is owed by households.
The report also highlights growing arrears owed by government departments and state entities. It records total government and parastatal debt of R2.6 billion.
A report shows that a government department's debt increased by R700 million between May and July, rising from R1.9 billion to R2.6 billion. The report also found that a parastatal owed more than R500 million.
Provincial government departments account for about R1.6 billion of the debt, while the national government owes approximately R101 million. The Ingonyama Trust owes the municipality R354 million.
The report identifies outstanding debt linked to the Department of Education Section 21 schools at R331.5 million. This comprises approximately R39.4 million in current debt and R292.1 million in arrears.
According to the report, the Department of Education signed an acknowledgement of debt and paid a down payment of R83 million. The remaining balance was to be paid over 16 months, with instalments beginning on 1 May 2026. The municipality said the department had made a second payment and was honouring the agreement.
The report warns that government debt is placing pressure on the municipality's cash flow, service delivery, and financial sustainability.
"Effective credit-control measures, consistent debt collection, and strict enforcement of the municipality's credit and debt-collection policies are essential to improving revenue collection and reducing outstanding debt," it states.
It also recommends continued co-operation between municipal departments and government institutions, as well as regular monitoring of debt-management strategies.
IFP councillor Mdu Nkosi said government departments should be treated in the same way as residents who fail to pay their municipal accounts.
"It is a pity that we all speak with one voice and say that government entities must pay for services, while they themselves are not paying for services," Nkosi said.
He said the municipality was borrowing money while large sums remained outstanding.
"If government departments paid their accounts, we would not even need to borrow money," he said. "The council must be firm when dealing with government departments and entities. It cannot be that a resident is disconnected for owing a small amount while government departments owe billions."
DA councillor Andre Beetge said there must be accountability across all spheres of government.
"The municipality cannot expect ordinary residents to pay their accounts, often leading to disconnections, while allowing government departments to accumulate billions in outstanding debt," he said.
The DA called for binding payment agreements with major government debtors, clear repayment schedules, monthly monitoring, and consequences for non-compliance.
"Where legally permissible, and where essential services are not placed at risk, the municipality should apply its credit-control measures, including disconnections. We recognise that hospitals, schools, and other essential facilities cannot simply be deprived of critical services. However, that cannot become an excuse for allowing debt to accumulate indefinitely.
"Alternative enforcement mechanisms, including intergovernmental escalation, legal action, and engagement with the National Treasury, must be pursued," Beetge said.
Ish Pradlah of the eThekwini Ratepayers and Residents Association said government departments in arrears should be treated in the same way as other municipal consumers.
The Ingonyama Trust had not responded to requests for comment.
The Department of Education said it had an arrangement with the municipality to address the issue.
The municipality said it was working on strategies to recover outstanding debt and reduce consumer arrears.
The KZN Premier's office said the Premier has prioritised this matter across the entire province. Since taking office, he has ensured that municipalities are paid, and that municipal debt owed by government departments is managed through a structured approach categorised into three levels that include:
