Municipality denies any money troubles relating to licensing services
According to the Nkomazi Local Muncipality (NLM), concerns over unpaid licence fees are unfounded and services will continue to be delivered as normal.
MALALANE – Concerns over the Nkomazi Local Municipality’s financial status follows a media statement in which the Democratic Alliance (DA) alleged that NLM owed the Mpumalanga Department of Public Works, Roads and Transport (DPWRT) R24 million in licence fees.
They stated the DPWRT threatened to take over licensing services for failing to pay, which was due to a cash-flow problem as seen in the Auditor General’s report.
The DA mentioned that there were also outstanding debts to the Road Traffic Management Corporation and Department of Licensing and Consumer Affairs.
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“The municipality performs licensing services on behalf of the Provincial Department of Roads and Transport (DRT) and in turn, pays it a percentage of the customers’ fees.
“Non-payment could have a devastating effect on motorists in Nkomazi, as they will be unable to obtain or renew driver’s licences. Businesses, especially car dealerships, will not be able to process licensing and registration documents for new vehicles,” the statement read.
The DA demanded that the NLM come up with an urgent payment plan as part of written questions submitted to the municipality.
It also planned to submit a motion that NLM should ring-fence all licence payments by consumers, which will provide them with money to pay their debts.
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Upon enquiry, municipal spokesman, Mr Cyril Ripinga stated that the financial status of NLM is very healthy and it has been able to pay all its debts. “The Nkomazi Municipality has noted with serious concern the notion that it is bankrupt and cannot pay its debtors.
“It is far from the truth that the municipality owes the DRT. The actual fact is that the department owes NLM and the two parties have met on a number of occasions to deal with this matter. It has been overcharging the municipality, and this issue has been raised.”
He said Nkomazi’s bank account reflected that by the end of June, after paying all debtors, it still had over R130 million.
