BY MBONO MDLULI
LOBAMBA – The Ezulwini Town Council has intensified efforts to recover outstanding rates after concerns raised by the Auditor General revealed a significant increase in unpaid accounts over recent years.
The issue was brought before the Public Accounts Committee as part of a review of audit findings affecting local authorities.
According to the Auditor General, outstanding rates increased by E11 219 691 between the financial years ending 31 March 2020 and 31 March 2021. During that period, unpaid rates rose from E17 914 922 to E29 134 613.
The report further showed that a substantial portion of the outstanding balance had been overdue for more than one year. Of the total amount owed, E25 988 183 represented rates that were more than 365 days overdue.
The findings raised concerns regarding the Council’s ability to collect revenue and maintain a healthy financial position.
Rates constitute one of the primary sources of income for local authorities and play a crucial role in funding services provided to residents and businesses. When rates remain unpaid for extended periods, councils may face difficulties in financing infrastructure maintenance and other community programmes.
In response to the audit findings, the Controlling Officer acknowledged the problem and informed the Committee that the Council had already begun implementing measures to recover the outstanding amounts.
Members of Parliament welcomed the acknowledgement and expressed satisfaction that the Council was taking steps to address the issue.
The Committee emphasised the importance of sustained collection efforts and urged the Council to continue pursuing outstanding debts. It also requested regular updates every six months on progress achieved.
Observers note that the willingness of the Council to confront the issue directly is a positive sign for local governance.
Many municipalities around the world face challenges associated with rates collection, particularly during periods of economic difficulty. However, effective debt recovery strategies can significantly improve financial sustainability and enable councils to better serve their communities.
The Council’s efforts are expected to focus on engaging ratepayers, strengthening collection systems and ensuring that arrears are recovered in accordance with applicable laws and regulations.
Improved collection rates could generate substantial benefits for the municipality. Increased revenue would provide additional resources for infrastructure projects, public amenities and other services that contribute to the quality of life for residents.
The Committee reiterated that accountability and sound financial management remain essential pillars of good governance.
Members encouraged the Council to maintain momentum and ensure that all available mechanisms are utilised to recover outstanding funds.
While the challenge remains significant, the Council’s commitment to tackling the issue has been welcomed as an important step towards improving municipal finances and strengthening confidence in local government administration.
As recovery efforts continue, stakeholders will be watching closely to assess the impact of the measures being implemented and the extent to which they contribute to reducing the large outstanding rates balance.
