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MINISTRY
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
QUESTIONS FOR WRITTEN REPLY
QUESTION NUMBER 2015/1373
DATE OF PUBLICATION: 17 APRIL 2015
Mr S J Masango (DA) to ask the Minister of Cooperative Governance and
Traditional Affairs:
(a) What is the current total amount owed to municipalities by government
departments in respect of (i) rates, (ii) electricity and (iii) taxes and
(b) what remedial action has his department embarked upon to (i) recoup the
monies owed and (ii) solve the problem
Reply:
a) (i), (ii) and (iii) The total amount owed to municipalities by
government departments as at December 2014 in terms of MFMA Section 71
report amounted to R3, 5 billion. Below is the breakdown of government
debt by income source
| Income source | Debt owed Râ000 |
|Property Rates |R1, 255 334 |
|Electricity |R591, 156 |
|Waste Management |R112, 415 |
|Waste Water Management |R125,349 |
|Water |R549,378 |
|Other |R960,141 |
|Total debt |R3,593,773 |
b) (i) the initiatives that have been undertaken by the departments are:
1. The department is part of a government task team established to
look at the
debt owed by government departments,
2. The task team is currently auditing and verifying the current debt,
3. The verification entails confirming whether invoices that are
contested by
government departments are correct.
(ii) The department is embarking on the following to solve the problems:
1. Ensuring that the municipalities verify properties with the deeds
office before they bill departments,
2. Ensuring that municipalities have enforceable credit control
policies and by-laws.
Further interventions by the Department will be pursued to ensure that
municipalities are not deprived of this income where it is legitimately due
to the municipalities.