The Gauteng Provincial Government owes R458-million in rates and taxes to municipalities across the province.
This was revealed in a response by Gauteng Premier David Makhura in the legislature on Tuesday.
“Between 1 April and 30 September 2016‚ the provincial government paid a total of R587-million towards debt owed to municipalities‚” Makhura told the house.
“The outstanding debt to municipalities has been reduced to R458-million. The average aged of the debt is also reduced from 120 days to 30 days. This tremendous progress compared to where we were in November 2015.”
A debt management team has been established to deal with debt owed to municipalities. Since the 2014/15 financial year to 2015/16‚ facilitated payments totalling R2-billion have been paid to municipalities through the help of the debt management committee.
Makhura said billing disputes had been the source of delay in payment.
“In many instances‚ the provincial departments have been overcharged … This billing problem has also led to a situation where some municipalities end up owing departments due to overcharging them. This is common in education and health institutions‚” he said.
– TMG Digital
Municipalities owed R458-million by Gauteng government
The Gauteng Provincial Government owes R458-million in rates and taxes to municipalities across the province.
This was revealed in a response by Gauteng Premier David Makhura in the legislature on Tuesday.
“Between 1 April and 30 September 2016‚ the provincial government paid a total of R587-million towards debt owed to municipalities‚” Makhura told the house.
“The outstanding debt to municipalities has been reduced to R458-million. The average aged of the debt is also reduced from 120 days to 30 days. This tremendous progress compared to where we were in November 2015.”
A debt management team has been established to deal with debt owed to municipalities. Since the 2014/15 financial year to 2015/16‚ facilitated payments totalling R2-billion have been paid to municipalities through the help of the debt management committee.
Makhura said billing disputes had been the source of delay in payment.
“In many instances‚ the provincial departments have been overcharged … This billing problem has also led to a situation where some municipalities end up owing departments due to overcharging them. This is common in education and health institutions‚” he said.
– TMG Digital
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