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The government owes the eThekwini Municipality more than R247-million in unpaid property rates.
Durban – The government owes the eThekwini Municipality more than R247-million in unpaid property rates, according to the city’s finance and procurement committee’s monthly report for last month.
“This is a clear indication that eThekwini is failing the city,” said DA caucus leader Zwakele Mncwango.
The city could not afford to have its coffers depleted by such a large sum, he said.
“This outstanding government debt would go a long way in aiding the municipality to provide housing and other basic services to those in need,” said Mncwango.
According to the report, the main culprit was the national Department of Public Works, which owed the municipality R51-million, R35-million of which was more than 120 days overdue.
Other departments in arrears included regional and land affairs, education, housing, health and transport, and the report said R43-million was owed by “unconfirmed” government accounts, which were being investigated by the real estate department. The unconfirmed accounts would be recovered once property ownership was confirmed, the report said, and this process was expected to be completed by the end of the year.
City treasurer Krish Kumar said these “unconfirmed” government accounts worried him.
These accounts included housing accounts which were previously the responsibility of the provincial government and were later transferred to local government.
“Now we have to go through each account and establish who is responsible for it,” said Kumar. “It is a lengthy process, and a special task team has been established to handle the matter.”
He also admitted concern over money owed by section 20 and section 21 schools.
“Some schools have used money that the government allocated to them to pay their rates for stationery,” he said.
“The provincial government recently announced it would make available an additional R400-million for rates.”
Despite his concerns, Kumar was “more than happy” with the progress being made on recovering the debt, parts of which were “historic”.
“The debt has decreased substantially, from between R700-million and R800-million a few years ago,” he said.
The DA accused the municipality of having offered the government preferential treatment, but Kumar said this was not the case.
“Certain government departments, and even some schools, have had their amenities switched off. We have definitely taken legal action, where necessary.”
Kumar pointed out that the eThekwini Municipality had the highest collection rate in the country last year.
“It was 97 percent. And our collection rate is sitting at 104 percent this year.”
This meant the municipality was collecting more money than it expected to.
“We have been working closely with the Finance Department and National Treasury. And we have made good progress with our debtors,” Kumar said.
“The municipality would continue to work with government and all money owed would be recouped.” – The Mercury
