The speaker of a small municipality owes R680,000 in outstanding municipal debt

The speaker of the Nketoana Municipality owes R680,000 in outstanding accounts, which forms part of R7.4 million owed by municipal officials and councillors.

The Nketoana Municipality is a local municipality within the Thabo Mofutsanyane District Municipality, in the Free State province of South Africa.

Its administrative capital is Reitz, and other towns in the municipality include Petrus Steyn, Lindley, and Arlington.

The primary economic driver of the region is commercial agriculture, particularly maize, wheat, sunflowers, livestock, and dairy farming.

The Nketoana Municipality has faced financial and administrative challenges, including adverse or disclaimer audit outcomes.

Its problems include revenue collection issues, growing liabilities, and cash flow struggles, affecting debt owed to major bulk utilities.

Anelia Smit, a councillor at the Nketoana Local Municipality, said that the outstanding municipal fees do not stop with residents.

She said that municipal officials and councillors owe millions of rands in outstanding municipal accounts.

“Municipal officials employed by Nketoana Municipality collectively owe the municipality R7.4 million in arrears,” Smit said.

“The amount owed by councillors exceeds R760,000. Of this amount, the current Speaker alone owes more than R680,000.”

She said that it is concerning as councillors and municipal officials should set an example for residents by ensuring their municipal accounts are paid.

She cited Schedule 2 of the Municipal Systems Act Code of Conduct for Municipal Staff Members.

“A staff member of a municipality may not be in arrears to the municipality for rates and service charges for a period longer than three months,” it states.

“A municipality may deduct any outstanding amounts from a staff member’s salary after this period.”

Smit questions why such a substantial amount was allowed to accumulate over such a long period without the necessary action being taken timeously.

“Nketoana can only provide sustainable and effective service delivery to its residents if everyone meets their financial obligations to the municipality,” she said.

“The residents of Nketoana deserve accountable governance, financial discipline and equal treatment.”