Municipalities to lose millions in revenue due to COVID-19: SALGA
The coronavirus pandemic and the national lockdown could cost already cash-strapped municipalities millions in loss of income.
This is according to the South African Local Government Association's (SALGA) presentation before the National Council of Province's Appropriations Committee.
SALGA says the pandemic and the measures taken by the country - will result in job losses and reduced income.
It says this will ultimately have an impact on municipal revenues with reduced collection levels and customers not being able to afford to pay their municipal bills.
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SALGA indicated that municipalities are also depending on extra income from the rental of municipal facilities such as conference centres and community tools.
Furthermore, a mere 5% drop in payment rates will cost municipalities an estimated R14 billion.
With this loss in revenue, municipalities are likely to default on bulk supply accounts in municipalities will not be able to use disconnections to put pressure on non paying customers.
