6 Limpopo municipalities on verge of collapse

Assessment reveals that municipalities under 'serious financial pressure'

6 Limpopo municipalities on verge of collapse

8 December 2016

Polokwane - Six Limpopo municipalities are on the verge of financial collapse and need urgent bailouts, the provincial government said on Thursday.

They are the Vhembe, Mopani and Sekhukhune district municipalities and the Bela Bela, Musina, and the newly-established Lim 368 local municipalities. The latter has its seat in Mookgopong.

Provincial government spokesperson Phuti Seloba told reporters that a detailed assessment had revealed that the municipalities were under "serious financial pressure".

Seloba was speaking after a provincial government executive meeting, which ended on Thursday.

Lim 368, Bela Bela and Musina were at risk of financial collapse if they did not get money soon.

However, only the Musina municipality would get help immediately. It would get R20m.

The municipality is on the border between South Africa and Zimbabwe and has been earmarked for economic growth.

Two months ago, the provincial government bailed out the Thabazimbi municipality. By then the council had already lost assets to the sheriff and had been forced to operate without resources for weeks.

This article first appeared on News24, see here.