The Thulamela Municipality has a problem – it is sitting with money that is technically not yet theirs. In fact, it has an extra R4.6 million in its bank account and does not know whose money it is. Consumers now have less than three months to claim the money or lose it forever.
Thulamela’s problem is not unique. Municipalities across the country struggle with what are known as unallocated deposits. These occur when payments are made into municipal bank accounts without clear references indicating what the payment is for.
This creates a major headache for municipal finance departments. National Treasury regulations hold municipalities fully accountable for such funds, which must be kept in a suspense account and separately accounted for. The municipality may not use the funds for projects without first following prescribed steps to identify their source. Monthly reconciliations must be done, and reports on uncleared items must be submitted to the accounting officer.
Only once unidentified deposits have remained in the municipality’s account for three years, may steps be taken to recognise the money as revenue.
In last week’s Limpopo Mirror, the municipality published a notice inviting members of the public to check a list of deposits. Anyone who believes a deposit is theirs should notify the municipality and provide proof of payment, along with details of what the payment was for. There is a three-month period for identifying such deposits, after which the funds will be recognised as municipal revenue.
The municipality also uploads the list of unidentified deposits on its website to make it easier for consumers to match their payments.
According to municipal spokesperson Ndwamato Tshiila, Thulamela Municipality is currently holding more than R4.6 million in payments dating from July 2022 to December 2025. The payments were presumably made for rates, water and electricity.
Tshiila said the municipality tries to identify payments mainly by cross-referencing consumer account numbers. Staff also cross-check stand numbers, names and places of residence. “Some residents include their cellphone numbers, which allows us to call them for clarity,” he said.
Payments remain unallocated when references are incomplete or unclear. “We encourage all Thulamela Municipality customers to use clear references, such as account numbers, stand numbers and residential details, when making payments. This helps ensure their payments are allocated correctly,” he said.
Tshiila assured residents that the process is transparent and accountable. “[The process] was audited [by the Auditor-General], and there were no findings on this item,” he said. He added that the municipality has implemented system improvements to further reduce unidentified payments. “These include clearer guidance for residents on payment references, upgraded financial software, and staff training to improve allocation accuracy,” he said.
One resident who checked the online list said she had managed to find her payment. “It was simple to claim after showing proof. This helps me know my money goes where it should.”