(b).The debtor’s age analysis is as follows
2. (a) The total interest charged amounts to R 291 million
(b) In ensuring that the specified debt is settled; the department participates in an inter-governmental task team that has been established to expedite the payment of debt owed by government departments to municipalities. This task team is led by the Department of Public Works.
Through the work of the task team we moved to a point where Government is improving the payment of current debt that is undisputed. The remaining challenge is older arrear debt and disputed current debt.
To accelerate payment and mitigate against disputed invoices, the Department of Public Works has employed a service provider (managed at DPW) to conduct the verification and authentication of invoices.
FOSAD has also resolved that while the debt is in disputes, departments must pay a minimum of 80% of their disputed debt whilst they are still querying it with the municipality and when verified can either be paid in full or credited to their account later on.