Under-collection puts CHDM in a spot
CHRIS Hani District Municipality (CHDM) was struggling to collect revenue from its debtors which was, in turn, having a negative impact on service delivery.
A report on the financial state of the district municipality, tabled at an ordinary council meeting at the Queens Casino and Hotel on Tuesday, showed that for the first quarter ending September 30, a total of R50.9-million had been billed by the local municipalities for both water which contributed R38.8-million (13%) and sanitation which contributed R12.2-million (4%) to the total revenue. The municipality only managed to collect R3.4-million.
CHDM executive mayor Kholiswa Vimbayo said the non-compliance of debtors was a major concern.
“We must ensure that the municipality is paid within the 30-day period. We need to monitor the revenue that is spent by the municipality and ensure that it translates to services delivered to communities. This would assist us to balance and review our performance.”
The mayor urged municipal officials to ensure that creditors were paid as well within the 30-day period.
The report indicated a total consumer debtors’ balance of R1.1-billion, ranging between zero days to more than a year, with about R1-billion being more than 90 days in arrears.
ANC councillor Nozibele Makanda said if the current situation regarding revenue collection remained, the municipality would be in trouble due to under-collection of funds.
“Council resolved in our last financial year that there would be interest added if debtors failed to make payments at the beginning of July. We thought this would encourage them to pay, but that did not happen. We even held road shows and walk-ins to businesses. While we understand the socio-economic conditions of our area, something has to change. We are also targeting officials and councillors across all the six local municipalities to ensure that not a single one fails to pay their accounts.”
Audit committee chairman Jackson Mbawuli said if the municipality collected R1-billion each quarter, there would be a positive difference regarding service delivery.
“Late payment of suppliers beyond 30 days is still an issue which requires serious attention. The municipality must ensure that the billing system is working in its favour and ensure all statements reach debtors on time.”
Council speaker Mxolisi Koyo said businesses were failing to pay what was due to the municipality.
“I am also going to put municipal officials and councillors to shame. How can one be working for the municipality and still contribute to the problem we are trying to fight? There are municipal workers here who do not pay their rates and it is important for us to lead by example,” Koyo said.