Govt depts debt gap still huge

2010-10-28 00:00

WHILE some government departments have made significant gains in reducing their debt to the Msunduzi Municipality, there is still some way to go.

When the intervention team took over the municipal reins in March, government debt stood at more that R111 million.

A recent sitting of the executive committee revealed the figure now stands at just over R77 million.

An analysis of a tabled report indicates that of the total R77 million owed, the national Public Works Department was indebted more than any other department at the sum of R32 million.

Hot on their heels is the Human Settlements Department, who owe the municipality R30 million.

The Health Department, whose current arrears stand at nearly R135 000, made significant gains in reducing their previous debt of almost R20 million.

In the same league is the provincial Department of Public Works, whose current arrears of nearly R5 million are quite an improvement from the previous figure of R13 million.

Those reflected as having settled their accounts in full are Telkom and KZN Wildlife, who previously owed the city just over R2 000 and R6 000 respectively.

The debts of those falling under the Education Department reflected minor progress. While the department itself managed to reduce its previous debt of R6 million to just over R5 million, Section 21 schools debt continues to hover at over R5 million.

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