Gaye Davis
JOHANNESBURG City Council is owed more than R44-million by residents of its south-western townships and Lenasia. If the debt is not written off by central government, it will almost double the council’s accumulated operating deficit of R54,7-million.
Roger McCulloch, assistant general secretary of the Civic Associations of Johannesburg (CAJ), blames a National Party sleight of hand during local government negotiations for the fact that the debt has not been written off.
He said this week negotiators got the NP to agree to write off arrears in coloured and Indian as well as black townships — but said clauses detailing this were omitted from a subsequent agreement on services and finances.
“It was a deliberate political strategy,” he said. “The agreement would have boosted ANC and civic support in those areas before the elections — something the NP did not want to happen.”
He said when then local government minister Dr Tertius Delport was challenged about this when the Local Government Transition Act was signed in January, he claimed he had been incorrectly advised. Delport, now agriculture minister in the Eastern Cape, said he had “often stated” publicly and in the cabinet that “no distinction should be made between the position of residents in African townships and any other area”. Until he vacated office a system was in place in terms of which all local authorities could apply for funds “to help them start the new era with a clean slate”. No fixed amount was budgeted for as the sum required fluctuated in terms of monthly payment or default on township charges, he said.
He insisted the restriction that the money be used only for black local authorities was removed by the cabinet. Asked why Johannesburg’s council received no money, he said: “That’s a question for the new government.”
McCulloch stressed the importance of arrears being written off: “To legitimise local government, it must start with a clean slate.”
The Johannesburg City Council has its R44,3-million arrears debt in a suspense account pending resolution of the problem. While the council currently has a cash surplus, city officials this week said that should the situation change, council would have to bridge any shortfall in its operating income by borrowing. Any loans would have to be repaid by increased charges levied on city residents if council had to write off the arrears.