Polokwane Municipality acts on unpaid bills as debt book hits R2.1bn
The Polokwane Municipality begins disconnections after debt reaches R2.1bn, with government departments owing over R320m.
POLOKWANE – The Polokwane Municipality has revealed that its debt book has ballooned to R2.1b, as of September 30, with government departments owing a combined R320.9m, the bulk of which is owed by the Department of Rural Development.
The municipality on Thursday launched a campaign to disconnect electricity to government departments and businesses with outstanding bills and no valid payment arrangements.
Municipal spokesperson Thipa Selala said the disconnections targeted only customers who failed to make arrangements.
“Those who made payment agreements were not disconnected, but they are expected to meet their commitments. Unfortunately, some departments have defaulted on previous agreements, placing further strain on municipal operations.”
According to Selala, only two departments, namely Rural Development and Education, faced disconnections on Thursday, owing a combined R271m.
This mounting debt affects the municipality’s ability to purchase water from Lepelle Northern Water and electricity from Eskom, Selala added.
Polokwane Mayor John Mpe said the action was necessary.
“We urge all customers including government departments and businesses, to honour their municipal obligations to ensure uninterrupted service delivery for all residents,” he said.
The DA welcomed the disconnection campaign, stating that it is necessary for financial sustainability.
“Government departments should lead by example. Any interest from late payments amounts to wasteful expenditure,” said councillor Jacques Joubert.
“It’s unacceptable that the Department of Rural Development alone owes R269m, making up 84% of total government debt to the municipality.”
In addition to government debt, 11 businesses in the city owed a combined R13.4m by Thursday, with R12.8m of that from businesses in the CBD and Westenburg.
Only seven had made recent payments, while the rest were in default.
The municipality says the credit control campaign will continue in an effort to recover outstanding revenue.
Figures released by the municipality indicate that:
Rural Development owes R269.4m.
Public Works owes R24.9m.
Limdev owes R7.9m.
Department of Health: R5m.
Department of Education: R2.26m.
Provincial Treasury: R365 400.
Office of the Premier: R626 115.
South African Defence Force: R768 191.
