Debt owed to municipalities and cities leapt to more than R300bn in the final quarter of last year, adding to the financial woes of municipalities struggling to meet revenue targets amid persistent power cuts.
Residents owed R305.8bn by December 31, compared with R261.5bn a year earlier, with households accounting for 71% of the total, data published by the National Treasury on Monday show.
City councils struggle to collect payments for services from consumers and in turn battle to pay suppliers, including Eskom, which has threatened to cut off their electricity supply.
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