National and Provincial Governments collectively owe Gauteng municipalities R226 million in rates and taxes. This was revealed in a written reply to my questions to the MEC for Local Government and Housing, Humphrey Mmemezi, in the Gauteng Provincial Legislature.
At the end of March this year Gauteng municipalities were owed R22.212 billion (for debt older than 90 days)by consumers, businesses and government departments.
National and Provincial Government departments have a legal obligation and a social responsibility towards municipalities to ensure that they pay their accounts on time. The overdue amount of R226 million impacts negatively on the cash flow of municipalities and in turn on their ability to deliver services.
I call on the MEC to interact directly with the relevant ministers and MEC's of departments owing monies to municipalities for rates and taxes, to ensure that these accounts are settled. Failing this the MEC should name and shame those departments refusing to co-operate.
Government departments should lead by example in paying their municipal rates and tax bills and in doing so, contribute towards sustainable local government.
The categories of debtors owing municipalities for 90 days or longer are:
· Municipal consumers (households) owe municipalities R 15.673 billion.
· Business property owners and occupants owe municipalities R 5.019 billion.
· Government department owe municipalities R 226.390 million.
The DA will continue to monitor the local government debt situation in Gauteng and highlight the problem of arrear debtors until the situation improves significantly.
Fred Nel, MPL
DA Gauteng Local Government spokesperson
Cell: 083 263 2427
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