LOCAL GOVERNMENT FINANCE
Joburg ratepayer debt overdue for a year approaches R10bn
The ‘historic’ debt is possible to recover — although it is unlikely it will be
Almost R10bn of the money that ratepayers owe the City of Johannesburg has been overdue for more than a year. This is part of almost R15bn owed to the city that was older than 90 days by March 31 2017, making it "historic" debt that is possible to recover, although it is unlikely it will be. The finance member of the mayoral committee, Rabelani Dagada, said at a finance committee meeting last week that the metro had to lean on its debtors book to generate more revenue, as City Power was underperforming. A summary of the age analysis of debt in the metro was handed to the finance committee on Thursday. Of the total debt of R18.1bn owed to the city, R1.97bn was between 91 and 180 days old, R2.87bn was between 181 and 365 days old, while R9.96bn was older than a year. Just R3.29bn of the debt is under 90 days old. Dagada said on Sunday that the debtors balance by the end of July had escalated to R17.6bn. The chairman of Johannesburg’s finance committee, Victor Penning, said it was "hor...
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