The impact of debt on the Local Government, with special refernce to the Mafikeng Local Municipality

Abstract

This study was on the impact of debt on the Municipalities, with special reference to the Mafikeng Local Municipality. The literature review on this study revealed that in South Africa there is presently lack of research on municipality finances. The increasing deterioration of the financial stability of the municipality sphere of government in South Africa is a matter of concern. To examine the current reasons for non-payment by residents of Mafikeng. The study used questionnaires and structured interviews to get the information on non-payments. Significant Results: Residents owe the municipality R224 851 400.46 and 45% of this amount comes from the Mmabatho residential areas as at February 2004. Conclusions: The municipality's debt collection department is not effective and has continuously failed to collect debt due to them. The municipality is therefore realising a huge and increasing debt due to the unwillingness of the local residents to pay for services.