Johannesburg - Matlosana Local Municipality, which owes Eskom over R200m and Midvaal Water over R50m, has been put under full administration and a forensic investigation, according to the North West local government department.
MEC Collen Maine made the announcement at a special council meeting following the non-improvement of the municipality's affairs, spokesperson Ben Bole said in a statement.
An administrator was put in charge of the municipality's financial affairs last year.
"We have not seen any change because the administrator was not in charge of the entire municipal administration," said Maine.
An administrator and intervention team would run the municipality for six months, starting in January.
A forensic investigation into the municipality was also expected to start in January.