BILLIONS LOST IN COUNCIL DEBT

NATIONAL Treasury has admitted that only about R21-billion of the R105-billion debt owed to the country ’ s 278 municipalities is “realistically collectable ”.

According to figures released by the Treasury, the outstanding debt includes historic debt accumulated over an extended period or older than 90 days, including interest on arrears.

“If rates and consumer debt is limited to below 90 days, and all interest is excluded from the calculation then the actual realistically collectable amount is estimated at R20.8-billion,” the Local Government Revenue and Expenditure: Third Quarter Local Government Section 71 Report states.

At the end of March this year, the country ’ s eight metros were owed R57.5-billion in outstanding debt, including R1.7-billion by government agencies. The debt increased by R4.3bn compared with the same period last year.

SA Municipal Workers ’ Union (Samwu) spokesman Papikie Mohale urged consumers in a position to pay to continue paying.

“Others can ’ t pay due to economic conditions not of their own making. Our contention is that municipalities exist not for profit making but provision of services.”

He said municipalities were severely underfunded by the national government.

“They get only 11% of the total government expenditure,” Mohale said.

Samwu, Mohale said, has a long-standing resolution for the nine provincial administrations to be abolished.

“Provincial legislatures are a waste of public money,” he said.