At least R81-billion is owed to municipalities for services, says the South African Local Government Association.
South African Local Government Association has called for a programme to be implemented to help municipalities struggling with financial management.
Municipal workers' unions have secured a three-year wage deal and a commitment from local government to fill 30 000 vacant posts.
Municipal managers' salaries will be regulated, the state says, after it emerged that bosses of municipalities which fared poorly were given bonuses.
Fedusa says it is highly disappointed with government's no show at the Nedlac meeting held to address problems caused by acid mine drainage.
Striking municipal workers have dropped their demand for an 18% salary increase to 10% -- but local government does not seem inclined to bite.
Municipalities are tightening up security and making contingency plans to clear backlogs, as the municipal workers' strike enters its second week.
Jacob Zuma's R2.4-billion loan to Swaziland has unwittingly strengthened the hand of unions, says Rapule Tabane.
Idasa has criticised a government training programme for newly elected councillors, saying it would not "ensure their competency".
Hopes of an end to the municipal workers' strike were dashed on Tuesday night, with no resolution yet on a pay parity deal Samwu said.
Striking municipal workers were expected to take to the streets again on Thursday as talks between the union and employers continue.
The South African Local Government Association will approach the Labour Court in Johannesburg on Tuesday to halt a countrywide municipal strike.
Roads in the Johannesburg city centre will be closed on Monday as approximately 8 000 Samwu members were expected to march through the city.
Eskom's proposed tariff hike will lead to more bad debts for municipalities, the SA Local Government Association (Salga) said on Friday.
Salary hikes for strikers, or services for citizens; the treasury tells municipalities to choose.