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Mounting calls and now reported plans by the cabinet to force government departments to pay up billions owed to municipalities countrywide for municipal services are a relief.
Media reports suggest the cabinet is seriously considering enacting legislation to compel government departments to settle their municipal debt within two months or face having the amounts sequestrated from their allocations from National Treasury.
At the inaugural Just Energy Transition (JET) Municipal Conference held recently in Midrand, President Cyril Ramaphosa rightly pointed out that municipalities would need to be in the driving seat regarding providing clean, affordable energy to communities, business, and industry.
The media reported that electricity & energy minister Kgosientsho Ramokgopa told the JET conference that national and provincial departments had an obligation to pay municipalities, so that in turn municipalities would be able to pay Eskom what they owed.
For municipalities to continue providing clean, reliable and affordable water and electricity supply, consumers including government departments must prioritise paying for these services.
Municipalities have had to stretch their limited resources to try to render services to the growing demand. Yet government departments collectively owe the country’s municipalities a staggering R18.6bn for rates and taxes.
In Johannesburg government departments were more than R630m in arrears to the City of Johannesburg by August 31. However, the city is aggressively trying to collect this debt, with some government departments committing to pay up.
This initiative is much needed for municipalities to be able to turn themselves around as they focus on service delivery.
Tebogo Moraka Group CFO, City of Johannesburg
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Time for government departments to pay up
Mounting calls and now reported plans by the cabinet to force government departments to pay up billions owed to municipalities countrywide for municipal services are a relief.
Media reports suggest the cabinet is seriously considering enacting legislation to compel government departments to settle their municipal debt within two months or face having the amounts sequestrated from their allocations from National Treasury.
At the inaugural Just Energy Transition (JET) Municipal Conference held recently in Midrand, President Cyril Ramaphosa rightly pointed out that municipalities would need to be in the driving seat regarding providing clean, affordable energy to communities, business, and industry.
The media reported that electricity & energy minister Kgosientsho Ramokgopa told the JET conference that national and provincial departments had an obligation to pay municipalities, so that in turn municipalities would be able to pay Eskom what they owed.
For municipalities to continue providing clean, reliable and affordable water and electricity supply, consumers including government departments must prioritise paying for these services.
Municipalities have had to stretch their limited resources to try to render services to the growing demand. Yet government departments collectively owe the country’s municipalities a staggering R18.6bn for rates and taxes.
In Johannesburg government departments were more than R630m in arrears to the City of Johannesburg by August 31. However, the city is aggressively trying to collect this debt, with some government departments committing to pay up.
This initiative is much needed for municipalities to be able to turn themselves around as they focus on service delivery.
Tebogo Moraka
Group CFO, City of Johannesburg
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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