Polokwane Municipality takes drastic steps to recover R252m

A deputation from the Polokwane Municipality visited ten offices of government departments in the city this week with a firm brief to cut-off electricity supply.

POLOKWANE – The Polokwane Municipality took drastic steps in an effort to recover some of the R252m that was owed to the local authority by government departments when the electricity supply to 10 of the offices of defaulting departments was disconnected on Monday.

Read more: WATCH: Municipality cuts off electricity at owing departments

This is, however, only a fraction of the R1.8bn that residents and businesses of the city were in arrears by on January 28.

An official of the municipality’s Energy Department had to use a special tool to disconnect supply to the head office of the Department of Public Works.

Members of the Portfolio Committee on Finance accompanied officials of the departments of finance, energy services and public safety, while Chief Finance Officer Nazeem Essa was available to assist where objections from consumers were raised.

Defaulters were handed “red letters” advising them that services had been disconnected and may and will only be restored once the debt is settled or satisfactory arrangements made.

The Department of Public Works owes more than R53.7m, while Rural Development, and Limpopo Economic Development Enterprise (Limdev) owe around R25.4m and R15.1m respectively. The national Department of Public Works owes more than R8.7m, while the departments of Education and Health are R3m and R31m in arrears respectively. Cooperative Governance, Human Settlements and Traditional Affairs owes R1.2m, Agriculture R102 000 and Sport, Arts and Culture more than R1.8m.

Polokwane Chief Finance Officer, Nazeem Essa hands a “red letter” to an official of the Department of Public Works, who opted not to be identified.

“Unreconciled Government Accounts” amounted to R112m.

Municipal Manager, Thuso Nemugumoni confirmed that letters were directed to the relevant heads of department as well as MECs in an effort to recover the debt. “Green letters” informing the consumers of the municipality’s intention to disconnect services were delivered weeks ago, but met with no response or any undertakings to settle the outstanding amounts.

Opposition parties in the council supported the action taken and said that it was in response to numerous requests to act decisively.

“We welcome the commitment by the municipality, specifically the MMC of Finance and the mayor in this regard. Even when access to a meter box was not given, the municipality made a plan to gain access and disconnect,” DA caucus leader Jacques Joubert, who accompanied the entourage, said and added that the DA will continue to advocate for equal credit control for all users.

Freedom Front Plus councillor Henry Lubbe thanked the municipality for coming to the party after previous requests calling for action against defaulters who are in a financial position to settle their debt.

“Failure by government departments to meet their obligations towards the municipality, poses a threat to the sustainability of the local authority and departments should set an example by paying their accounts timeously and in full,” Lubbe argued.

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