The DA in Matlosana is deeply worried by the latest report of the municipality’s financial situation. The DA is raising a very important “SOS” over the rapid decline in Matlosana’s finances.
The Municipality’s debtors have increased to R10.6 billion now, after continuing to rise for the last 10 years.
Debtors are now increasing at a rate of R120 million a month.
The municipality owes Eskom R2.3 billion and Midvaal water R1.9 billion, with these debts increasing by R100 million a month too.
Matlosana’s shortfall on recovering current electricity charges is now at a crisis level too, where in September 2024 Eskom billed the municipality over R200 million, yet the municipality invoiced only R92 million and collected a mere R54 million.
While only 25% of billable electricity is being recovered, 25,000 consumers with prepaid meters are not paying a cent, as the system indicates these households are not buying electricity.
There is absolute disregard for national and provincial debt collection policies in Matlosana, and this is heading for financial collapse.
The Municipality is also losing a significant amount of water: only 70% of the water from Midvaal reaches our reservoirs. This loss en-route to Matlosana’s reservoirs is costing nearly R180 million annually for water that fails to reach distribution points.
The DA has recommended that this matter be urgently discussed in the council and a resolution be established in line with National Treasury guidelines as adopted by this council.
The DA will continue to report, follow up, and inform the National Treasury of this dire situation, where we will raise this “SOS”.