EThekwini Municipality Faces R79 Million Debt Crisis as Hundreds of Employees and Councillors Fall Behind on Payments

EThekwini Municipality targets employees and councillors for R79 million in unpaid bills as the city battles a total debt of R44 billion in February 2026.

By: AXL Media

Published: Mar 26, 2026, 6:47 AM EDT

Source: The information in this article was sourced from IOL

Internal Debt Trends and Recovery Efforts

The eThekwini Municipality is grappling with a significant internal financial shortfall as thousands of its own workers remain in arrears for essential services. According to a recent debt collection report, employee debt stood at R77 million in February 2026, representing a decrease from the R91 million recorded in late 2025. While the number of staff members in debt has dropped from over 4,300 to approximately 3,765, the persistence of these unpaid accounts continues to strain the city’s balance sheet. Municipal authorities have noted that while salary deductions are a primary recovery tool, legal limitations on how much can be withheld often hinder the total liquidation of these arrears.

Accountability Among Elected Officials

The financial crisis extends to the city’s legislative arm, with 41 out of 111 ward councillors collectively owing the municipality R2.8 million. Zainul Dawood reports that the slight reduction in councillor debt is largely attributed to internal pressure and reports being actioned through the municipal speaker’s office. To address the situation, the city has warned that elected officials will be subject to the same stringent credit control processes as the general public, including potential redlining at credit bureaus and legal action. This push for accountability is designed to signal that those responsible for municipal governance must also adhere to its fiscal requirements.

Broader Economic Pressures on Households

The internal debt figures are part of a much larger R44 billion total debt owed to the municipality, with household debt accounting for a staggering R33 billion. Municipal officials indicated that this massive figure reflects a growing number of residents who are struggling to meet their financial obligations due to various socio-economic factors. Water bills currently constitute the largest portion of the debt at 42 percent, followed by property rates and electricity at 23 percent and 15 percent, respectively. The scale of these unpaid bills suggests a widespread systemic challenge in maintaining the city's revenue stream amidst a tightening economic environment.