With respect to challenges SALGA pointed out that there is inadequate or lack of requisite financial management capacity within the municipal budget and treasury offices and this results in late submission of financial statements as well as dependency on consultants. Further, SALGA emphasised that political oversight over municipal administration (in particular finances) needs to be strengthened. With respect to municipal debt SALGA noted that the biggest debtors that owe municipalities millions are in fact households that owe municipalities a substantial amount of R731 million whilst business owe R131 million. It must be stressed that government debt is also huge amounting to R163 million. Notably, the Provincial Intergovernmntal Relations Forum resolved that government must settle their outstanding debts to municipalities and put in place mechanisms to prevent accumulation of debt. In this regard the PIGRF proposed as follows: