State’s debt to municipalities estimated at R64-billion

A high level government committee has been formed to help municipalities recover the debt that national government owes them; the outstanding debt may amount to as much as R64-billion, says Performance, Monitoring and Evaluation Minister Collins Chabane.

Speaking at a parliamentary press briefing on Tuesday, Chabane said: “Work on the issue is going on. The issue is the verification of the bills that is being sent to national departments. As soon as they are verified they are settled. It is a large volume of work that needs to be done as some of them [the bills] are quite old,” he said.

Seven provinces have submitted status reports on provincial debt owed to municipalities and Chabane said that the directors general of the departments of Cooperative Governance and Traditional Affairs, Public Works and his Department of Monitoring and Evaluation were developing a project plan to address the challenges related to the monies owed to municipalities.

According to documentation released at the briefing the number of municipalities overspending their operational expenditure had been reduced. Forty-nine municipalities (17% of the total) had shown operational expenditure equal to or greater than 75% of the budgets and another 16 showed operational expenditure of above 100%.

By March, 229 municipalities showed operation expenditure at below 75% of their adjusted budgets.

The documentation said that interventions included monitoring by national treasury on whether municipalities would be under-spending or overspending in their budgets. — I-Net Bridge

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Toxic power struggle hits public works

With infighting and allegations of corruption and poor planning, the department’s top management looks like a scene from ‘Survivor’

De Lille unfazed by acting-DG’s baggage

Latest twist in public works saga suggests minister quashed query into doctored corruption report

Merchants of despair

When imprisonment becomes a business, the profit motive rears its head at the expense of the good of the prisoners. Three recent books deal with the murky workings of the prison-industrial complex in South Africa

De Lille hastens IDT closure

The Independent Development Trust’s board and the department of public works and infrastructure have agreed to devise an exit plan, which will see the entity closed by early next year

Crucial state workers given lifeline

Employees at the beleaguered IDT have been given a three-month extension of their contracts

Border walls don’t stop viruses, but a blanket amnesty might

Why South Africa should consider amnesty for undocumented migrants in the time of the coronavirus outbreak.

Subscribers only

Dozens of birds and bats perish in extreme heat in...

In a single day, temperatures in northern KwaZulu-Natal climbed to a lethal 45°C, causing a mass die-off of birds and bats

Q&A Sessions: Frank Chikane on the rainbow where colours never...

Reverend Frank Chikane has just completed six years as the chairperson of the Kagiso Trust. He speaks about corruption, his children’s views and how churches can be mobilised

More top stories

Eusebius McKaiser: Mpofu, Gordhan caught in the crosshairs

The lawyer failed to make his Indian racist argument and the politician refused to admit he had no direct evidence

Corruption forces health shake-up in Gauteng

Dr Thembi Mokgethi appointed as new health MEC as premier seeks to stop Covid-19 malfeasance

Public-private partnerships are key for Africa’s cocoa farmers

Value chain efficiency and partnerships can sustain the livelihoods of farmers of this historically underpriced crop

Battery acid, cassava sticks and clothes hangers: We must end...

COMMENT: The US’s global gag rule blocks funding to any foreign NGOS that perform abortions, except in very limited cases. The Biden-Harris administration must rescind it

press releases

Loading latest Press Releases…