South African municipality owes Eskom R108 million, cannot pay its creditors within 30 days, and projects are stalled

The Musina Local Municipality owes Eskom R108 million, cannot pay its creditors within 30 days, and projects it will only achieve a funded budget in 2028/29.

Musina Municipality is a local municipality within the Vhembe District Municipality, in the Limpopo province.

It is the northernmost local municipality in South Africa and borders Botswana, Mozambique and Zimbabwe.

The Beitbridge Border Post, close to Musina, is one of Africa’s busiest land border crossings for trade, customs clearing, and transport logistics.

The Musina-Makhado special economic zone is a strategic industrial zone focused on energy, heavy industry, manufacturing, agro-processing, and logistics.

The area is also rich in mineral resources, with major operations including De Beers’ Venetia Diamond Mine, as well as coal, copper, and aggregate mining.

There is a thriving commercial farming community specialising in citrus fruits, tomatoes, game farming, and livestock.

Despite its riches, the Musina Local Municipality faces a mix of service delivery bottlenecks and administrative governance issues.

Financial audits routinely highlight issues around compliance with procurement legislation, expenditure management, and supply chain controls.

Jacques Smalle, DA Limpopo’s spokesperson on provincial treasury, raised the alarm about the municipality’s finances.

He said that Musina owes R108 million to Eskom and cannot pay its creditors within the statutory 30-day period.

The municipality’s financial situation has deteriorated so badly that it projects that it will only achieve a funded budget in 2028/29.

A presentation at a meeting between the Provincial Treasury and the Department of Co-operative Governance, Human Settlements and Traditional Affairs revealed the mess.

The Provincial Treasury said Musina’s voluntary Financial Recovery Plan is “not satisfactory and has no impact” because it is not being adhered to.

Musina was also among the municipalities affected by the National Treasury’s July 2026 equitable share intervention following persistent non-compliance with the MFMA.

“There are equally serious concerns about financial capacity. Musina admits that staff shortages prevent it from preparing interim financial statements,” Smalle said.

“A municipality cannot credibly recover from financial distress without the internal skills and reliable financial information needed to manage that recovery.”

The DA has called on the Limpopo Provincial Executive to place Musina Local Municipality under a mandatory financial recovery intervention.