Government remains the biggest defaulter when it comes to paying property rates, a situation that is crippling municipalities and stalling service delivery.
This was revealed by Ezulwini Municipality Chief Executive Officer Mathokoza Shongwe during the Eswatini Urban Forum held at Palazzo Ezulwini.
Shongwe told delegates that while councils are being told to be innovative and financially sustainable, their biggest debtor is the very government that owns vast properties in towns across the country.
He said municipalities rely heavily on property rates to maintain roads, collect waste, provide street lighting and develop new infrastructure. When government fails to pay, councils are forced to cut services.
“Government should lead by example,” Shongwe said. “If we want to talk about financing smart solutions and resilient infrastructure, the first step is for government to pay what it owes to local authorities.”
His remarks come at a time when many councils are struggling to balance their books following cuts in subventions. Mbabane and Manzini municipalities have both had their grants reduced, while their obligations continue to grow.
Shongwe said without predictable revenue from rates, it becomes difficult for councils to borrow, plan long-term projects or attract private investors.
He urged the Ministry of Housing and Urban Development and the Ministry of Finance to prioritise the settlement of outstanding rates to restore the financial health of local authorities.
