Loading...
See More

Gauteng Municipality borrows R150m

Jul 17 2012 16:49 Sapa

Related Articles

Gauteng health dept settles debts

Gauteng shebeens granted permit extension

Gauteng underspends on welfare

Gauteng shows erratic growth

Gauteng municipalities owed over R26bn

 

A Gauteng municipality has borrowed R150m from two commercial banks to pay its service providers, the Star newspaper reported on Tuesday.

Minutes of a special council meeting showed Emfuleni municipality, consisting of Vanderbijlpark, Vereeniging, Sebokeng, Evaton, and surrounding areas, had borrowed the money, according to the newspaper.

R50m was raised from Absa and R100m from Standard Bank, with the municipality reportedly owing service providers R30m.

Municipal spokesman Paseka Rakosa told the newspaper on Monday: "We have approached financial institutions for a facility of R150 million as indicated."

He said the loan was taken out according to the Municipal Financial Management Act.

"The loans will assist the municipality mainly to meet its short-term financial obligations.

Executive mayor Greta Hlongwane said on Monday the municipality had a cash-flow problem, owing more than R2bn for services, such as electricity, rates, and water, the Star reported.

Earlier this year, the Gauteng portfolio committee on local government and housing ordered the province's department to assist the municipality to attract competent and qualified staff to deal with revenue.

The committee also urged the provincial legislature to help the municipality develop an effective billing system for debt recovery and revenue collection.

*Follow Fin24 on Twitter, Facebook and Google+.

 
gauteng  |  loan

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

The Fast and Furious R40 million

With the Fast and the Furious 7 hitting South African cinema’s this April, all eyes are on the cars and we’re in for a treat!

 
 

Luxury living

This is the most expensive burger in the world!
Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote

Loading...