City owed R200m.
National and provincial departments identified
NATIONAL and provincial government departments owe the City close to R200 million in outstanding debt, while its arrears older than 60 days are at just over R73m. In its debt and collections report for June, City revenue chief Trevor Blake said the total amount outstanding for government accounts as at June 30 is R197 683 787. It includes the current amount due but not yet payable. “A yearon-year comparison was performed, and there has been a decrease of R28.4m when compared to June 2017,” Blake said.
The total amount of the arrears is R73.8m. A year-on-year comparison was performed on the arrear debt, a decrease of R42.7m was evident when compared to June 2017,” Blake said. The total outstanding amount owed by national departments as at June 30 is R62.4m. Rural Development and Land Reform owe just over R3m, while the Department of Correctional Services owes the City R20.4m. The Department of Public Works owed R38.9m.
In total, the outstanding amounts for June for departments of the Western Cape government show that City is owed R131.6m. The departments are: Education: R36m, Health: R13m, Human Settlements: R26.4m, Transport and Public Works: R54.5m, Social Development R170 949 and Cultural Affairs and Sports: R1.3m. Blake said steps were being taken to enforce settlement of the outstanding debts.
“During June 2018 some departments continued to experience systematic challenges in processing payments due to the change of the City’s banking details, resulting in delays in effecting payments. The relevant departments are being engaged to settle the accounts in arrears. Monthly meetings have been scheduled with the relevant departments and the provincial treasury,” he said.
The City has received and approved 220 new applications for rates rebates for senior citizens and disabled persons. “As at June 30, a total of 37 689 applications were received and 31 129 citizens who met the criteria were registered and they are receiving rates rebates. There were approximately 125 825 properties with a municipal valuation of R200 000 or less, which are considered as indigent,” Blake said.
Speaking on the non-payments and defaulters, Blake said final demand letters would be sent out on a monthly basis to those debtors whose accounts fell into arrears. “During June 2018, 20 853 letters of demand were sent out and 1 180 debtors were listed for adverse credit listing. A total of 708 electricity prepaid blocking and daily charge collection letters were delivered and 487 accounts were sent for prepaid electricity purchases collection during June 2018,” he said.