Tshwane metro recoups R3.3 billion from Gauteng govt’s rates and services debt

According to a report by Pretoria Rekord, the Tshwane metro municipality has recovered R3.3 billion from Gauteng government departments for rates and services.

This is according to Gauteng MEC Lebogang Maile.

Speaking at a media briefing, the Gauteng department of co-operative governance and traditional affairs (Cogta) MEC Maile said on Monday that the provincial government was getting better when it comes to paying for municipal rates and services.

“The outstanding amount owed by Gauteng provincial government departments to municipalities for rates and services is R449 million.

“Cogta in the province, along with the Gauteng provincial treasury, established a debt management committee (DMC) to facilitate a process of resolving government debt as an intergovernmental relations intervention between the various spheres.

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“The DMC has managed to facilitate payments to municipalities amounting to R12.9 billion, with the biggest beneficiary being the City of the Johannesburg at R5.6 billion, followed by the City of Tshwane at R3,3 billion.”

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Aside from the government debt, R79.4 billion was owed to Gauteng municipalities with the majority of this amount owed by household consumers, “followed by commercial (business) at R20.1 billion, which is 21% of the total debt,” Maile said.

Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE) for the 2020/21 financial year:

According to Cogta, Tshwane metro recorded R13.39 billion in irregular and wasteful expenditure.

“The highest 2020/21 UIFWE was recorded by the City of Johannesburg followed by the City of Tshwane at R16.62 billion and R13.39 billion respectively,” Maile said.

Maile said Cogta developed templates to investigate irregular expenditure cases that could be referred to for forensic investigation.

He raised concerns about vacant municipality management positions.

“From a total of 11 Gauteng municipalities, only three municipal manager positions are currently filled and eight are vacant, with acting incumbents,” he said.

Tshwane currently has an acting city manager Mmaseabata Mutlaneng who was appointed by Cogta in 2020 as part of the administration team.

Maile said Tshwane municipality was among seven municipalities at risk of financial instability and require monitoring and support.

From mid-February, the municipality embarked on an “aggressive” revenue collection campaign and recovered R700 million in an attempt to balance its financial books.

Out of the 11 municipalities in the province only one, Ekurhuleni, was financially stable.

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In March 2020, the Gauteng government placed the Tshwane municipality under administration following a recommendation by Cogta. At the time the municipality was faced with political instability. During the administration, 214 councillors were left without jobs for seven months.

Administration of the municipality was found to be illegal by the Gauteng North High Court in Pretoria. The Constitutional Court delivered the same judgment when the matter was argued at the highest court in the land.

This article first appeared on Caxton publication Pretoria Rekord by Sinesipho Schrieber. Read the original article here.