Government owes municipalities R4.2bn

2013-09-16 15:53

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National government owes municipalities R4.2 billion, Cooperative Governance and Traditional Affairs Minister Lechesa Tsenoli has revealed.

Three-quarters of this amount had been owing for more than 90 days, he said in a written reply to a parliamentary question today.

“Last month, government’s debt (money owed by government departments and state entities to municipalities) amounted to R4.2 billion.”

Of this amount, R606 million was current debt – debt that was due, but not in arrears – and R3.2 billion had been owed for more than 90 days.

Tsenoli said in many instances government departments “dispute the amounts that they are billed for by municipalities”.

It was for this reason that provincial debt management steering committees had been established to resolve disputed accounts.

“This has proved to be useful, as reflected by the fact that levels of current debt stand at approximately R600 million.”

On money owed by municipalities to government, Tsenoli said that at the end of June this year, the total arrears owing, “from current up to 90 days plus”, was R8.613 billion.

“The total arrears recorded, discounting the current, was at R1.436 billion, with municipalities in arrears of more than R621 million sitting at 90-plus days,” he said.

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