Huge Public Works debts crippling municipalities

2012-07-11 00:00

CAPE TOWN — The national and provincial Public Works departments owe various municipalities across the country about R443 million in rates and utility payments.

The department acknowledged the debt in a written reply to a parliamentary question and admitted the debt was increasing, despite the existence of a task team appointed to take steps to reduce the debt.

The task team comprised representatives of the national Treasury, the Department of Co-operative Governance and Traditional Affairs and the Public Works Department.

Democratic Alliance MP Annchen Dreyer said in a statement yesterday that the lack of co-ordination between various levels of government could not be allowed to undermine the work of municipalities.

In May the team’s report to Parliament showed that:

• It only managed an 11% reduction inthe debt, despite a target of 50%;

• In 10 of the 20 municipalities on which the task team focused, there had actually been an increase in debt.

The task team attributed this partially to an inadequate register of fixed assets.

Yesterday the department disclosed the figures owed to municipalities per province.

Municipalities in KwaZulu-Natal are owed R100 436 943, second only to the whopping R213 697 780 owed in the Free State.

Derek Luyt, an analyst attached to the Public Service Accountability Monitor (PSAM), said this kind of debt, with other factors, such as defective management, could easily paralyse service delivery.

“It is simply about political will that needs to be shown.”

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.