The Democratic Alliance (DA) in Limpopo has called on newly appointed MEC for Cooperative Governance, Human Settlements and Traditional Affairs (CoGHSTA), Pule Shayi, to strengthen the capacity of Vhembe District Municipality (VDM) to recover more than R3.1 billion owed to the municipality.
DA Limpopo leader and Member of the Provincial Legislature, Jacques Smalle, said the municipality’s escalating debtors’ book was a serious threat to its ability to deliver services to communities across the district.
Smalle said that, as of 30 June 2026, VDM’s debtors’ book had ballooned to R3.168 billion, which he described as an indictment of the municipality’s failure to collect revenue owed to it.
“Vhembe District Municipality is grant dependent, has an unfunded budget and is in financial distress. As both the Water Services Authority and Water Services Provider across the district, Vhembe carries the ultimate responsibility for potable water delivery, yet it remains incapable of collecting sufficient revenue from its water sales,” said Smalle.
The largest portion of the outstanding debt is owed by residential households, which account for approximately R2.6 billion. Businesses owe a further R198 million, while the Department of Education owes R63 million and local municipalities owe approximately R56 million.
Smalle said the municipality’s own outstanding payments were also a concern, with VDM owing approximately R191 million as of the same period.
Of this amount, about R103 million is owed to the Department of Water and Sanitation, while a further R32 million is owed to Lepelle Northern Water.
“Vhembe District has many challenges, but it cannot address its own challenges if it cannot collect its own debt. When billions of rand remain uncollected, the result is inevitable: deteriorating services, mounting debt, cash-flow crises and communities that pay the price,” Smalle said.
He called on MEC Shayi to intervene by strengthening the municipality’s revenue collection and debt-management systems.
“We will request MEC Shayi to strengthen Vhembe District Municipality’s capacity to drastically improve revenue collection and debt management, provide the necessary expertise to implement effective policies and systems, and capacitate officials,” said Smalle.
According to the DA, the provincial government has a constitutional responsibility to support municipalities in building their administrative, technical and institutional capacity.
Smalle said the party would therefore press the new MEC to ensure that VDM receives the necessary support to improve its financial position and fulfil its service-delivery obligations.
“The DA’s position is simple: collect every cent that is legally owed. Revenue collection is not optional — it is the foundation of a functioning municipality,” Smalle said.
The DA believes that improving revenue collection would help VDM address its cash-flow problems, settle outstanding obligations and strengthen its ability to provide essential services to residents across the Vhembe District.
