Government owes municipalities R4.8 billion

By Staff Writer
According to a report, national government departments owe municipalities R4.8 billion. In addition to this, private households and businesses owe R104 billion. This is according to the Department for Co-operative Governance and Traditional Affairs (CoGTA).
According to Tozi Faba, deputy director general at CoGTA, the department has launched a campaign which aims to encourage national departments to adopt a culture of paying.
Faba reportedly told journalists: “There is no particular reason that one can give [for not paying] except to say here and there they [the departments] are just defaulting and from time to time they will query the amounts.”
At the governance and administration cluster media briefing on Sunday, it was announced that National Treasury has issued letters to all of the national government departments who have funds owing to municipalities. In addition, “letters have been issued to provincial treasuries for provincial debt owed to municipalities.”
Municipalities owing funds
While the municipalities has funds owed to them, they in turn owe funds to service providers, such as Eskom and the National Water Board. These outstanding funds led to the municipalities’ equitable shares being withheld earlier this year.
According to the division of revenue bill, equitable share payments, are a “municipality’s share of local government’s equitable share of revenue raised nationally.”
It was thought that this would affect 59 municipalities, and about 1.3 million households. “Regarding the withholding of the Equitable Share tranche for March 2015, National Treasury met with 38 of the 59 municipalities to date and 54 municipalities received their full tranche of the Equitable Share. Three municipalities received part of the Equitable Share tranche and two (Renosterberg and Ngwathe) did not receive any funds. Of the total R2.08 billion equitable share withheld, R2.02 billion has been released; 48 out of 51 municipalities have signed Eskom agreements, and 12 out of 14 municipalities have signed water board agreements,” revealed the CoGTA at the media briefing.

Recent Articles

Featured Tax implications for capital gains

Capital gains do give rise to tax implications. We approached an expert to find out what these are.

Preparing your domestic staff for leaving your employ

We found out what measures you should take in order to ensure your domestic worker is financially secure after they leave your employ.

Can you monetise your hobby?

As with most hobby enthusiasts, you likely have spent many hours developing unique skills to perfect your passion. However, have you considered getting paid for this effort as well?

What are the interest rates on store accounts?

Opening a store account is one of the easiest ways to build your credit score. Not surprisingly, a recent report by the National Credit Regulator (NCR) found store accounts to be among the most popular credit types for South African consumers - and demand for them is growing


Thursday Prawn Special at Blowfish Restaurant

Price: R125
When: Thursdays
Where: Cape Town

Tonsorial Gents Cut and Style Deal

Price: R300
When: Tuesdays to Saturdays
Where: Cape Town

Pedicure Spring Special at Shambala Spa

Price: R390
When: Mondays to Fridays
Where: Gqeberha

Latest Guide

Guide to debt rehabilitation solutions