Gauteng owes millions
A debt management committee has been formed
The Gauteng government owed its local municipalities R476 million, spokeswoman Matlakala Motloung said.
She said the province managed to pay off over a quarter of the total debt in the last three months.
“Gauteng provincial departments owed local authorities R476m at the end of June 2012, a fact that we are not quite content about,” Motloung said in a statement.
“This was a reduction from the R619m owed by departments at the end of March 2012.”
Three departments still owed municipalities substantial amounts.
The department of infrastructure development was in debt of about R182m, the education department owed about R107m, and the health department R100m.
“Government debt to municipalities often relates to assessment rates and services that have in certain instances accumulated over an extended period of time,” said Motloung.
A debt management committee had been formed to help in the matter.
“Because we are cognisant of the importance of cash-flow to municipalities, we have been working hand-in-glove with local authorities to ensure that we meet our obligations faster.”