Gauteng departments to pay municipal debt - 02 June 2022

Office of the Premier 2022/06/01 - 22:00



The Gauteng Department of Cooperative Governance and Traditional Affairs (CoGTA) through the Provincial Debt Management Committee (PDMC) is facilitating the payment of government debt owed to municipalities.

Thus far, the PDMC has facilitated R12.9 billion in payments to municipalities, with the biggest beneficiaries being the City of Johannesburg at R5.6 billion followed by the City of Tshwane at R3.3 billion.

"The total outstanding amount owed by Gauteng Provincial Government Departments to Gauteng municipalities for rates and services after deductions of payments, credits, and overstated bills is R218,673,481.70 as of April 2022.

"The debt has been significantly reduced due to continuous payments, credit rates and taxes, advance payments (for both services and rates), and rebilling disputes from respective departments," said MEC Lebogang Maile.

He was tabling the CoGTA 2022/23 financial year budget vote at the Gauteng Legislature on Wednesday, 25 May 2022.

Maile said CoGTA is supporting Emfuleni, Merafong, and Rand-West municipalities with a strategy and practical efforts to curb electricity and water losses as well as their debt.

Various engagements with Eskom and Rand Water were held as part of efforts to address debt-related issues.

"Having considered the progress made and persistent challenges, including the level of non-compliance, transgression, and insubordination of the administration, CoGTA recommended that Gauteng provincial EXCO consider the extension of the intervention by six months, which was granted", added Maile.

The collection rate from July 2021 to December 2021 was 83%. That is just over R2.7 billion billed and just over R2.2 billion collected.

The department has received a budget allocation of R610 789 000 for the 2022/23 financial year towards its functional and development of local government systems.  

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