The Western Cape treasury is disputing an amount apparently owed to the city of Cape Town, which by noon on Thursday had cut off the water and electricity supply to the provincial department of local government and housing.
”There was agreement in the last month between senior officials from the province and city … We believe that our bill is R5,7-million in total and that is going to be paid within 30 days,” Lynn Brown, provincial minister for finance, said on Thursday.
She was responding to a city statement detailing the outstanding amount the province owed the city, a whopping R79-million.
Over half of the amount, about R46-million, has been outstanding for the past year, claimed Ian Neilson, the city’s mayoral committee member for finance in a statement.
However, Brown challenged this, saying the city receipted the provincial government with bills accruing from national government and state-owned enterprises.
Brown said the province owed the city about R238-million by October last year, whittling this down to R79-million by May this year.
Brown said that of this R79-million, R68-million was owed by housing, but this was also being disputed by the provincial housing ministry, who averred it only owed R13-million.
”In terms of the inter-governmental relationship we find this very spurious to come and just switch off the electricity,” said Brown.
She said the city had given the province 48 hours’ notice but had not honoured that agreement.
Brown said the Municipal Financial Management Act made provision for the provincial treasury to intervene in any financial disputes between the city and the province.
”…. We’ve been doing that for the past year,” said Brown, adding that part of the current problem was the fact that the province, in terms of legislation, could only pay for ”real, undisputed bills”.
”We’re not not paying our bills,” said Brown.
She said a personal call to city mayor Helen Zille had not been returned on Thursday, and local government and housing provincial minister Richard Dyanti was tasked with ”taking up the cudgels” with the mayor.
In the city’s statement earlier on Thursday, Neilson said the metro was cutting off the water and electricity to the provincial department of local government and housing at 27 Wale Street.
The department had been given until noon to pay an ”outstanding and undisputed” amount of over R724 000, R613 734 of which comprised rates and service charges and R110 227 of which was electricity.
”Province has been given repeated notifications about this account, but so far has not produced payment,” read the statement, adding that it was in line with the city’s policy to cut off any clients who could afford payment but won’t.
Mayoral spokesperson Robert Macdonald said ”there will be more cut-offs after this if payments are not made”.
Cape Town International airport was among the city’s debtors, owing about R50-million to the city. — Sapa