Aggregate municipal consumer debt climbed R46.5bn or 33.6% last year to reach R184.7bn by end-December. However, more than two thirds of this debt, R144.8bn, has been owing for longer than 90 days and is regarded by the Treasury as being “realistically uncollectable”. According to figures provided by Treasury, aggregate municipal debts stood at R138.2bn at the end of December 2017. In a report on the local government revenue and expenditure figures for the six months between July and December 2018, Treasury said that if consumer debt is limited to less than 90 days, the actual realistically collectable amount is estimated at R39.9bn. This should not be interpreted that the National Treasury suggests the balance be be written-off by municipalities. “It needs to be acknowledged that not all the outstanding debt of R184.7bn is realistically collectable, as these amounts are inclusive of debt older than 90 days [historic debt that has accumulated over an extended period], interest on ar...
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