Gauteng municipalities owed R26 billion

2012-07-11 08:41

Gauteng municipalities are owed more than R26 billion.

The Star newspaper reported that households owed 70% of the debt, businesses 23% and the government two percent, according to the newspaper.

Democratic Alliance local government spokesperson Fred Nel said: “Debt owed to municipalities in Gauteng rose by R4.26 billion (19.2%) in the last financial year, between 31 March 2011 and 31 March 2012.”

With the debt being older than 90 days, it posed a serious problem since debt that old was not usually recoverable.

The information was sourced from Gauteng provincial gazettes, he said.

The City of Johannesburg was owed more than R11.2 billion by the end of the last financial quarter, compared to R8.4 billion last year.

The Ekurhuleni metro was owed R8.1 billion, up from R7.2 billion; the City of Tshwane R3.6 billion from R3.2 billion, Emfuleni R2.3 billion from R1.9 billion, and Mogale City R612 million.

The West Rand district municipality was owed R8.2 million, Randfontein municipality R220 million, Lesedi municipality R163 million, Westonaria R110 million and Midvaal R78 million.

Merafong was owed R490 million last year. There were no figures for this year, according to the newspaper.

The Sedibeng district municipality was owed the least, R652 000, down from R1.7 million last year.

Nel said the DA wanted the SA Revenue Service to look at linking municipal arrears with income tax returns since this would be cheaper than debt collection, The Star reported.

Gauteng local housing MEC Humphrey Mememzi told the provincial legislature in May his department and the provincial treasury were implementing a debt strategy to ensure departments paid their municipal rates and services.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.