MunicipalNews

Debt owed to municipalities skyrocketing

"We note with extreme concern the rising debt owed to municipalities countrywide" — DA

Despite efforts by the Randfontein and Westonaria Local Municipalities as well as other municipalities to collect monies owed by consumers for services rendered, the DA in Gauteng remains doubtful that this will be successful.

They believe serious intervention needs to happen. This was said in a media statement.

The party also called for the minister of Cooperative Governance and Traditional Affairs, Pravin Gordhan to present a turnaround strategy to address the skyrocketing of debt owed to municipalities.

According to DA shadow minister of Cooperative Governance and Traditional Affairs, Kevin Mileham, it is high time that the minister intervene and review municipal strategies with regard to debt collection as it cannot be allowed essential services such as clean drinking water and electricity among others to be compromised.

“We note with extreme concern the rising consumer and government debt owed to municipalities countrywide. We request that Gordhan present a turnaround strategy for this because it is seriously worrying.

“It recently was revealed in a report that the quarter that ended in March 2014, municipalities were owed R93,4 billion for municipal services, compared to R84,2 billion for the same period last year,” says Mileham.

He added that municipalities are systematically failing to collect the revenue they need to keep services going.

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