INLSA
File Photo: The eThekwini City Manager Sibusiso Sithole.
Ten years ago eThekwini municipal officials began investigating which government departments owned buildings for which millions of rand in rates and services bills were outstanding, but today they are no closer to identifying the culprits.
Councillors reading a report tabled before the eThekwini finance and procurement committee on Tuesday expressed anger, saying that this was a result of “utter incompetence” by municipal officials.
The report showed that the municipality was owed R167 million in outstanding rates and services by various entities, including government departments, in arrears spanning several years.
The figure excluded R278.3m owed by the Ingonyama Trust and R60m in hostel debt owed by the Human Settlements Department.
However, the department has made an arrangement with the city to pay the amount over three years, with the final payment expected in the 2012/13 financial year.
The report states that the Ingonyama Trust board took the municipality to court because it was convinced that it was not liable to pay rates on its properties.
The court ruled in the municipality’s favour, but the board took the matter on appeal and judgment was reserved. It is understood that the board is prepared to take the matter to the Constitutional Court. The trust has not paid the municipality rates since 1998.
Another culprit was the Education Department, whose Section 21 schools owed the municipality R23.3m. These schools receive funding from the department, out of which they are expected to pay for municipal services.
“Some of the schools use the allocation for other pressing issues and do not pay for their services.
“The municipality is negotiating with the department to pay for these schools because it intervenes when they (the schools) are disconnected (from services),” the report reads.
The Public Works Department owes R49m, but it has not been confirmed if the buildings the amount relates to belong to the department.
The municipality needs to investigate and visit about 1 000 properties to verify which departments they belong to.
“The confirmation is a slow process and it is an ongoing exercise from both sides. It involves intensive investigations and visiting these properties physically,” the report reads.
The report says the SA National Roads Agency Limited (Sanral), which manages the N2 and N3 highways, owes the municipality R27m, but the agency is disputing the amount, saying that it owes R12m, which will be paid by the end of the month.
ANC councillor Dumisani Ngema said: “According to us, we are owed R27m, but they (Sanral) believe that they owe us R12m. We will pursue Sanral for the balance we believe is owed to us.”
The city’s real estate department said that it was trying to resolve the matter with Sanral.
The city’s head of revenue management, Peet du Plessis, said the amount that Sanral was being billed would stay fixed until a committee set up last year to assist municipalities in recovering money from government entities had resolved the matter.
Du Plessis said the city was waiting for judgment in the Ingonyama Trust matter and held monthly meetings with government departments to manage the debt situation.
DA councillor Warren Burne said that the city should set a three-month deadline to recover money owed by government entities “otherwise the debt will be fobbed off indefinitely”, he said. – The Mercury
