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Free State municipalities the worst payers

Stood up for Zuma: Free State premier Ace Magashule. Picture Credit: Gallo Images
Stood up for Zuma: Free State premier Ace Magashule. Picture Credit: Gallo Images

Service providers and people who do business with municipalities in the Free State province are highly likely not to be paid on time.

A Statistics SA report released on Wednesday has identified Free State municipalities as the worst payers to suppliers and creditors.

Combined the country’s municipalities owed their suppliers and other creditors R197 billion on June 30 2015 — 11.6% more than in 2014.

The provinces which showed the highest percentage increases between 2014 and 2015 were Free State (40.4%)‚ North West (18.3%)‚ Gauteng (17.2%) and Mpumalanga (13.9%).

Unusual municipal expenses: R415-million for Subscription and membership fees

The provinces which contributed the least to the increase in total liabilities between 2014 and 2015 were KwaZulu-Natal (0.5%)‚ Western Cape (3.9%)‚ Eastern Cape (5.6%) and Limpopo (6.6%).

Last year‚ Eskom threatened to pull the plug on most Free State municipalities after they failed to service their R2 billion electricity debt.

When monies owed to different water boards were added the figure climbed to R3.2 billion.

Eskom reconsidered its threat after the provincial government intervened and made commitments that the debt would be serviced.

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