Govt. departments’ owes metro over R197-million hindering it from basic service delivery
The Tshwane metro municipality is the highest owed metro in Gauteng by the end of February by provincial government departments.
Over R197-million was owed for rates and services by provincial government departments to the Tshwane municipality making it the highest owed metro in Gauteng.
This was according to a written reply to the Gauteng legislature recently by Gauteng Cogta MEC Lebogang Maile when asked about the state’s debt to municipalities.
By the end of February, the government departments owed Tshwane metro R197 749 088.
The infrastructure development department owed the highest bill of R153-million, followed by the health department (R33-million), the education department (R6-million), the social development department (R2-million), the transport department (R1.7-million) and the department of housing (R57 867).
According to Maile, since 2015 R3.3-billion has been paid by the departments to the municipality.
DA Gauteng leadership member Solly Msimanga said huge debt owed by the government led to municipalities struggling to render basic services to residents.
“Some of the municipalities have unfunded mandates and have no money to render services to their residents.
“This money owed to them could help to ease their financial pressure,” Msimanga said.
“While the Gauteng government departments are failing to own up to their responsibility of paying their utility bills, it is the municipalities who are left stranded and unable to pay off the debt owed to Rand Water, Eskom, fix and maintain dilapidating municipal infrastructure and attend to day-to-day service delivery.
“Gauteng government departments should lead by example in paying for utility debt owed to municipalities so that residents can follow suit,” he said.
In February, an adjusted budget report revealed that Tshwane faced worsening cash flow constraints due to low revenue collection.
The 2021/22 adjusted budget report stipulated that the municipality’s cash and short-term investments as of December 31, 2021, amounted to R200-million with a bank overdraft (deficit) of R833-million.
Also read: Undocumented residents at Plastic View to be dealt with – MMC Abel Tau
The report raised concerns over the negative cash balance stipulating “the city does not have sufficient cash reserves to cover short-term monthly fixed operating costs if no additional revenue is collected in a month (in this case in January)”.
The municipality in early February started disconnecting services to businesses, government departments, embassies and residential customers owing the metro. The municipality reported that it managed to recoup over R600-million.
To regain financial stability the municipality still has to recover billions in the multi-billion debt but the revenue collection campaign saved it from being cash-strapped.
Do you have more information about the story?
Please send us an email to editorial@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord’s websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram
