Minister of Cooperative Governance and Traditional Affairs (CoGTA) Velenkosini Hlabisa has sent a stern warning to government departments failing to settle their outstanding debt owed to municipalities across the country.

Hlabisa was addressing executives and council members from 257 municipalities who attended the 2025 National Members Assembly of the South African Local Government Association in Durban.

Hlabisa says some municipalities are rendered dysfunctional due to the substantial debt by government departments, which he says has persisted for many years and impacted on service delivery.

“Through the support of the entire cabinet, CoGTA and National Treasury, we have identified all the departments that owe municipalities. We are cleaning the data- and the earliest should be January next year. A joint cabinet memo will be tabled where every department if they don’t have money to pay a complete amount, they must enter into an agreement on how they are going to pay the municipality they owe.”

Hlabisa adds, “If Treasury is able to withhold money from municipalities equally so, Treasury will have to be able to take money from departments and redirected it to municipalities they owe.”

Minister Velenkosini Hlabisa is attending the 2025 @SALGA_Gov National Members Assembly at the Inkosi Albert Luthuli International Convention Centre.#LocalGovernment#EveryMunicipalityMustWork pic.twitter.com/dmRE7u2GwB

— NationalCoGTA (@NationalCoGTA) November 27, 2025

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