The High Court has ordered the Mpumalanga Economic Growth Agency (MEGA) to pay the City of Tshwane R213.67m for water, sanitation and electricity services supplied to its property at the Ekandustria Industrial Park in Bronkhorstspruit.

However Tshwane Mayor Nasiphi Moya claims that the total debt owed by MEGA to the metro has escalated to R461m.

Moya said MEGA has 10 days to pay and if they fail to pay, Tshwane will consider further enforcement, including the possible attachment of MEGA’s bank account.

“Since 2021, the city has repeatedly engaged MEGA to settle its debt, including through payment arrangements and by exhausting all available intergovernmental relations processes,” Moya said.

She said that despite their best efforts to reach an amicable settlement, the amount has remained unpaid, leaving the city with no alternative but to approach the court.

“The multi-party coalition government has a duty to collect revenue owed to the city and has ramped up efforts to resolve this matter since assuming office in October 2024.”

She said revenue collection efforts will not stop with residents and businesses.

“Having strengthened enforcement through Tshwane Ya Tima, we are now intensifying efforts to recover money owed by government departments and state entities.”

Moya added that where engagement and intergovernmental processes fail, the city will pursue every lawful avenue to recover what is owed to Tshwane.

“Residents have a responsibility to pay for the services they use or make arrangements where they are unable to do so,” she said.

“The same applies to businesses, government departments and state entities. Every rand we collect allows us to reinvest in water, electricity, roads and other basic services.”

Moya said Tshwane will collect what is owed and reinvest it into the services residents depend on.

MEGA spokesperson Noko Mosotho said the agency notes the judgment ordering it to pay the City of Tshwane R213.67m, comprising R28.6m for water and sanitation services and R185.6m for electricity, together with legal interest.

Mosotho said the amount it owes to Tshwane reflected in the judgment is R213.67m.

“Figures of R231m and R461m that have reportedly circulated in relation to this matter are not amounts reflected in the judgment,” Mosotho said.

He said MEGA does not dispute that it is indebted to the city for municipal services rendered and remains committed to settling the debt.

“We value the relationship with Tshwane as a fellow organ of state and we approach the matter in the spirit of co-operative government.”

MEGA CEO Isaac Mahlangu said separately from the court proceedings, MEGA has continued to engage Tshwane regarding the outstanding amount.

On March 11, 2025, MEGA met with City of Tshwane executives, where the parties agreed that the dispute would be pursued through the city’s credit control policy.

Mahlangu explained that MEGA subsequently lodged a formal complaint in terms of that policy, and engagements between the parties have continued.

In the court proceedings, MEGA opposed the application on legal grounds relating, among other things, to the provisions of the Intergovernmental Relations Framework Act 13 of 2005.

Mahlangu said the court ruled in favour of Tshwane, and MEGA respects the judgment.

He said the agency intends to apply for leave to appeal in terms of Section 45(1) of the Intergovernmental Relations Framework Act 13 of 2005.

“The agency has been advised that the matter raises an important question concerning the manner in which intergovernmental disputes should be dealt with and warrants consideration by an appellate court.”

He said MEGA remains committed to constructive engagement with Tshwane metro and to resolving the outstanding amounts.

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