Households owe municipalities billions

2010-12-02 14:54

South African municipalities are owed a staggering R37.7 billion by households, while government owes them some R3.4 billion, a report released by the treasury today revealed.

It showed that total aggregated consumer debt, to municipalities and metros, stood at R62.3 billion as at 30 September 2010.

Of this, government accounted for R3.4 billion or 5.5%. Households accounted for the largest component at R37.7 billion or 60.6% of the total.

The budget statement for local government for the first quarter of the 2010/11 financial year showed the country’s metropolitan municipalities were owed a total of R35.4 billion at September 30, 2010.

This is an increase of R3.9 billion or 12.4% from the same period last year. The biggest percentage growth from the previous year was in the City of Johannesburg, where it increased 23.5% or R2 billion.

Nelson Mandela Bay’s (Port Elizabeth) debtors book increased 16.5% or R275 million, the Ekurhuleni metro’s 15.1% or R1.1 billion and Cape Town’s by 11.8% or R558 million.

The statement covers revenue and expenditure, and conditional grant spending of municipalities for the period July 1 to September 30, 2010.

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