The effects of non–payment of services by government to a local municipality : an analysis of the Mafikeng local municipality

Abstract

This study was on the effect of non-payment of services by the government to the local municipality referring specifically to the Mafikeng Local Municipality. According to the literature review, there Is lack of research on the management of finances hence not only this municipality Is still struggling to manage their finances and as a result, some are collapsing. The main objective was to Investigate the reasons for non-payment of services by the government. The study used questionnaires and structured interviews to get the information on non-payment. The government owes the Mafikeng Local Municipality huge amount of services. There is a poor system of collection of debts at the Mafikeng Local Municipality which impact negatively on the financial condition of this municipality. There are challenges surrounding the failure of the government departments In paying the Mafikeng Local Municipality due to the fact that they do not budget enough for services. The other factor is that they do not receive their bills on time which makes difficult for them to pay their bills on time.