NATIONAL COUNCIL OF PROVINCES
FOR WRITTEN REPLY
QUESTION 39
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 21/08/09
(INTERNAL QUESTION PAPER 09-2009)
Mr MJR de Villiers (DA-WC) to ask the Minister of Basic Education:
1. What are the relevant details of payments of municipal rates
and taxes for schools in each of the nine provinces;
2. whether there are any schools in arrears of these payments; if so, (a)
which schools, (b) what are the reasons for this and (c) when will the
arrear amounts be paid
3. whether any action has been taken to address the issue; if not, why
not; if so, what action? CW51E
REPLY:
1. EASTERN CAPE PROVINCE
1. The Provincial Department of Public Works is responsible for the
payment of rates and taxes for schools except in the case of
registered private schools.
2. Since the devolution of the payment of rates and taxes from National
Department of Public Works to the province in the 2008/2009 financial
year, the provincial department had to verify ownership of 15 600
properties that have been devolved from the National Department.
Payment could only be made once the ownership and use has been
established. A number of municipalities could not bill the department
due to various reasons, for example, municipal valuations are not
complete and there is no proper record of properties. With the
verification process the province found a number of schools that were
built on municipal land and not yet transferred to the name of the
province. This has made payment difficult due to regulations of the
conditional grant as well as requirements of the Auditor-General.
3. The department agreed with National Public Works on an agency
agreement where transfer payments were made to municipalities. This
was found in order by the Auditor-General. During the current
financial year Service Level Agreements are being signed with the
municipalities for the payment of rates and taxes in order to assist
where schools are registered on other names apart from the name of the
province.
2. FREE STATE PROVINCE
1. Schools are not paying rates and taxes; this is the responsibility of
the Department of Public works due to the fact that all government
property belongs to Public Works.
2. (a) Based on the fact that rates and taxes are paid by Public Works
the Department of Education would not know which schools have arrear
accounts.
(b) The Department would not know what the reasons for the arrears
would be but it is known that not all land has been transferred from
the municipalities to the Department of Public Works which prevents
Public Works from making payments to municipalities as they cannot
effect payments for properties which are not registered in their name.
© It is not for the Department of Education to resolve the problem as
it is a problem between the Municipality and the Department of Public
Works.
3. A task team was established by the Department of Public Works to visit
all
municipalities to discuss a plan of action in that regard and the
registration
of land and properties in the name of Public Works is under way.
3. KWAZULU-NATAL PROVINCE
Information was not available at the time of compilation and this
will be
made available as soon as it has been received from the province.
4. GAUTENG PROVINCE
1. The payment of municipal rates and taxes are done by the Department of
Infrastructure Development.
2. Not applicable
3. Not applicable
5. LIMPOPO PROVINCE
1. The understanding of the Department of Education is that custodianship
of Immovable State Property lies with the Department of Public Works
and as such they are responsible for settling bills with regard to the
rates and taxes.
2. There are schools that are outstanding and the main reason is the non-
availability of financial resources. The National Department has been
engaging with SALGA and the relevant Departments to find a solution to
the issue. An investigation that was conducted in 2007/08 showed that
the amount owed could be in excess of R16 million.
3. The Department agrees that consumption of services need to be paid for
and most schools are adhering to that. Many schools in the province do
not charge fees and that puts additional strain on their financial
resources.
6. MPUMALANGA
1. The payment of taxes and rates for schools in Mpumalanga is the
responsibility of the Department of Public Works and Transport.
2. There is no action taken as there are no schools that have arrears for
rates and taxes.
7. NORTHERN CAPE
Information was not available at the time of compilation and
this will be
made available as soon as it has been received from the
province.
8. NORTH WEST
1. Municipal rates and taxes are paid for by the Department of Public
Works,
Roads and Transport, and that responsibility does not reside with
the
Department of Education.
2. The information that is required resides with the Department of Public
Works, Roads and Transport, which receives a spreadsheet of all
schools
in a particular district which are outstanding in terms of rates
and taxes.
The spreadsheet is provided once-off rather than periodically. At
the time
of the compilation of the report the Department of Public Works,
Roads
and Transport had not yet received the information from the
municipalities.
3. On every occasion when the matter of outstanding municipal rates and
taxes owed by schools is brought to the attention of the department
by
the municipalities, the department raises the matter with the
Department
of Public Works, Roads and Transport. Most of the outstanding
monies
are usually settled on time although there are instances when the
responsible department will cite inadequate allocation to cater for
all
schools.
9. WESTERN CAPE
1. The payment of taxes and rates for all government property in the
Western
Cape is the responsibility of the department of Public Works and
Transport.
Compiler:
Ext:
ACTING DIRECTOR GENERAL
DATE:
QUESTION 39 APPROVED/NOT APPROVED/AMENDED
MRS. A. MOTSHEKGA, MP
MINISTER OF BASIC EDUCATION
DATE: