KwaZulu-Natal's R10 billion debt crisis: Premier Thami Ntuli unveils Financial Recovery Plan

KwaZulu-Natal Premier Thami Ntuli announced on Wednesday that the provincial government owed various service providers approximately R10 billion.

This significant financial burden has prompted the government to craft a comprehensive Financial Recovery Plan aimed at stabilising the province's finances over the next four years, commencing from the 2025/26 financial year.

Ntuli said: “We entered the 2024/25 financial year carrying accruals of R9.5 billion, which are payable in the current cash flow period.

This situation places immense pressure on the provincial fiscus.”

He highlighted the complexities of financial obligations inherited from previous administrations that have exacerbated KZN's fiscal predicament.

The impact of escalating debt and enforced budget cuts have already begun to flash warning lights across critical sectors.

In reflecting on the strain faced by health and education departments, Ntuli said: “Delayed procurement of essential medical supplies has exacerbated staff shortages in hospitals and clinics, while major infrastructure upgrades have been postponed, resulting in deteriorating patient care.”

He did not shy away from addressing the challenges in the education sector, and indicated that overcrowded classrooms and a lack of adequate resources were undermining the quality of teaching and learning.

“These realities threaten the future prospects of our children,” he reasoned.

As the provincial government of unity faces the arduous journey ahead, Ntuli emphasised the critical importance of transparent communication and community involvement.

“Difficult decisions had to be made; we cannot continue on a path of unsustainable spending.

"We had to choose discipline over drift, focus over short-term comfort, and long-term recovery over temporary relief,” he said in substantiating the rationale behind the Financial Recovery Plan.

The launch of the FRP entails aiming for R1.5 billion in annual savings from 2025 to 2029.

The plan outlines seven strategic objectives intended to restore fiscal integrity, promote stability and improve the overall well-being of the province and its people.

Premier Ntuli conveyed his optimism regarding the potential success of this extensive plan, accentuating the pivotal role of committed public servants.

He urged heads of departments to take ownership of their responsibilities, and emphasised the need for robust internal capacity building programmes and emphasising accountability and transparency throughout the administration.

“The success of this plan depends on all of us working together,” he said.

DAILY NEWS