Gauteng residents, businesses owe Gauteng municipalities R49bn - MEC

2017-08-27 18:17
Barbara Creecy (File, Beeld)

Barbara Creecy (File, Beeld)

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Johannesburg - Gauteng municipalities are owed approximately R49bn by residents and commercial customers, Finance MEC Barbara Creecy said on Sunday.

A household debt of R31.8bn, for services and taxes by residents, was the largest amount outstanding.

"This amount represents 65% or the largest share of debt due to municipalities for services in the province," Creecy said.

Commercial customers owed R13.5bn – approximately 27% of the debt.

Government debtors accounted for 3% of the total outstanding amount.

Creecy said that the debt for water (R14.6bn) accounted for nearly a third of the amount still owing.

Property rates and electricity debtors owed 19% (R9.1bn) and 18% (R8.8bn) respectively.

Among the reasons cited for the debt were: disputes over the ownership of properties liable for municipal accounts; incorrect billing; the slow process of opening new municipal accounts; and the transfer and registration of RDP houses.

Furthermore, Creecy said, certain municipalities submitted their invoices late and others failed to split monthly accounts according to services and property rates.

Read more on:    barbara creecy  |  johannesburg

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