The SA Local Government Association has told all municipalities to "immediately implement credit control measures to recover the debt from government departments".
National and provincial departments owe municipalities at least R5bn.
The Local Government Association took its stand a day after the Treasury said it will withhold its equitable share allocation funding to 60 municipalities that between them owe Eskom billions of rands.
This could lead to a number of municipalities diverting funds from salaries and service delivery projects to pay their Eskom bills.
The association said yesterday that the equitable share funding allowed struggling municipalities to provide services to residents.
"It is regrettable that the Treasury has decided to withhold equitable share from 60 municipalities. In many cases this source of revenue is the life blood of most municipalities and their communities," Salga said.
"This decision will have wideranging and long-term ramifications for both the affected municipalities and the communities they serve. Withholding the funding will disproportionately punish the poor and badly affect service delivery.
"Some municipalities are already unable to pay salaries and provide basic services as a result."
The Treasury is said to have told municipalities that equitable share funding will be restored when they have settled their Eskom debts.
Most of the affected municipalities are in the Free State and North West (13 each), Mpumalanga (11) and Northern Cape (11).
The Treasury said this week that the persistent failure of some municipalities to pay their creditors within 30 days amounted to "financial mismanagement" and that it was "important to take steps to ensure that municipalities meet their financial commitments".
As at 31 December, municipalities owed Eskom R9bn, of which R4.5bn is current.
Municipalities owed water boards R3.6bn, of which R1.3bn is current.
Salga has said that it will implement its own measures to deal with debt repayment defaulters, especially state departments.
"It's no secret that municipalities are currently owed R96bn for services... about R5.4bn of this by government departments."
Salga said: "Non-payment for any service has a knock-on effect. Municipalities have a responsibility to provide sustainable services. Citizens, businesses and indeed government departments also have a responsibility to pay for the services they use."
It said municipalities had "to implement every possible measure to recover debt".
"It is our considered view that the withholding of the equitable share [funding] to these municipalities and local government in general is unconstitutional. Neither the constitution nor legislation make provision for withholding the equitable share."
The association said money owed by government departments should be channelled back to municipalities so that they could pay their debt to Eskom.
The SA Municipal Workers' Union said the withholding of the equitable share funding would disadvantage workers.
"[It] will affect workers in that municipalities will not have money to pay their salaries, and it will affect service delivery because workers will not go to work hungry," said Samwu spokesman Papiki Mohale.
Source: The Times, via I-Net Bridge
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