SA’s municipalities owed R30.6bn

2010-05-31 18:26

Johannesburg - Metropolitan municipalities are owed a total of R30.6bn as at March 31 2010, according to the third-quarter local government budget statement released on Monday by the National Treasury.
The report also showed that national consumer debts amounted to R56.8bn as at the end of March, while R290m in bad debt has been written off.
The amount owed to metropolitan municipalities represented an increase of R219m from the same period in the previous year.
Consumer debts owing to secondary cities increased from R11.5bn in the second quarter to R11.9bn rand as at the end of March.
Municipalities in aggregate had spent 65.7 % or R135bn of the R205.6bn total adjusted budget as at March 31 2010, the third-quarter local government budget statement of the National Treasury said on Monday.
This comes against a revenue collection in aggregate of 70.7% or R153.3bn of the R216.8bn total adjusted revenue budget.

The statement showed that metropolitan municipalities collected 66.7% of their revenue by the end of the third quarter of R87.3bn, of the total adjusted budget of R130.7bn.
The eThekwini municipality collected the highest proportion of its revenue at 70.1% with Cape Town following at 68.2%
- I-Net Bridge

  • Not Suprised - 2010-05-31 18:50

    I am not suprised. The level of competecy allied with poor skills and a complete inability to provide a customer focused service is the root cause of this. It has taken me approximately six years in one instance and four in another to make any progress in solving billing problems with the City of Johannesburg. I could write a book about how sloppy and incompetent the officials are.

  • Spot - 2010-05-31 18:54

    And the number is only going to get bigger while we all carry on with our "silent protest"

  • Ben - 2010-05-31 19:00

    They are pricing themselves out of the market. The problem will get worse over the next few years.

  • Rogan Dawes - 2010-05-31 19:24

    Perhaps it is a stupid question, but how much of that is owed by the government? I know that they are notoriously bad at paying their own bills. Nice to see them criticising the rest of us. Take the log out of your own eye, before trying to take one out of someone elses. (For the record, I DO pay my bills on time)

  • Michael Bowery - 2010-05-31 19:25

    Most of it caused by mismanagement of funds, a combination of embezzlement, exhorbitant salaries for its ANC officials and corruption. By the time the ANCs electorate wake up, it will be like Zambia 26yrs ago. Corrupt and broke!

  • Vico - 2010-05-31 19:57

    This is a scary statistic! I can see a lot more bad debts coming and who's going to foot the bill?

  • JB - 2010-05-31 20:46

    No prizes fo guessing who ain't paying....

  • gasguy - 2010-06-01 06:39

    Does this include the poor bas.t.ds that have recevied bills for R100'000's becused the A holes that run the municipalities can,t read the meters and bill correctly, really I bet its a quarter of this. I heard of one guy in Germiston has R1million to pay and they will sort it out later! How doi they know what is owing to them. They dont have a frikkin clue whats going on.

  • eish - 2010-06-01 06:40

    EISH....Kant beleef!

  • Harry - 2010-06-01 07:05

    Has anyone else noticed how slowly Dear SARS is paying back VAT credits?

  • Sab - 2010-06-01 07:10

    The ANC started this "non-payment" campaign many, many years ago. Now it's part of their culture. Big problems ahead.

  • Baas'Boerseun - 2010-06-01 07:17

    Let's be honest. The largest percentage of those not paying are black, ANC voters and this is the reason why the regime basicly are doing nothing to the defaulters. Instead they ae raising the elctricity prices to make up their losses by nailing those who pay even more. The old saying about prostitutes are so true here: The better you perform, the more you get scr3w3d. This is illegal and Afriforum, Cosatu etc should be fighting these increases all the way to the constitutional court.

  • Steven - 2010-06-01 07:30

    Well that's one side of the picture. How many people are not receiving proper service. Should we just pay them even if they are under-delivering? Would you go to Spar and pay for a loaf of bread only to get to the till and be told, well we can only give you two slices instead. Would you leave there happily after that. Fire good for nothing lazy officials. Pay them based on performance.

  • Ciela - 2010-06-01 08:18

    How is it possible if my Water and Lights are cut off if I am overdue for 30 days by more than R300? Is there different rules for different people ? Just wondering!!!!

  • rockman - 2010-06-01 08:55

    I give up!!!! Surely all the government ooficials are sorted out financially by now and there is no need to take anymore money. come on guys your pockets are full. Now is the time to to do things right and give service to the people. it's what you are paid to do......Ooops!...I just woke up now.

  • Toni - 2010-06-01 08:58

    I have always said that the ANC and its deployees cannot even organise a piss up in a brewery. When someone does not pay their utility bills they cut you off. But if they are owed so much money it looks like they are selective in who they cut off. I think if you have a previously disadvantaged surname your lights will not be cut. Makes you think. My bill has gone up from R2200 to R3900 so I am paying for those who do not pay.

  • Richard - 2010-06-01 09:10

    My personal expierence is inaccurate billing eg subdivided stand billed as whole stand plus plus billing of sub divsion stand.

  • neil - 2010-06-01 09:35


  • HD - 2010-06-01 09:40

    If you want to tender for any gov tender, you have to submit a tax certificate to show that you pay your taxes. They should do the same with voting in the local elections. Why are you allowed to vote for your municipal representatives if you do not pay your municipal bills? Shouldn't the people who pay, be the ones that get the say?

  • Public Representativ - 2010-06-01 09:41

    Yes, a sad situation. In fairness, there are officials in all municipalities who go the extra mile to help residents, but when datbases, as is the case in the Tshwane Metro, are hopelessly corrupted, regular ratepayers become extremely negative about what they see as hostile and discriminatory local government. And yes, government itself is responsible for a good slice of that debt.

  • Brij - 2010-06-01 09:48

    Another blunder by goverment. THey just cant cut it. This will go on and on until we will be another Zim

  • jualette - 2010-06-01 09:52

    Part of the problem is that the ratepayers are getting annoyed how the funds are being utlized. A simple example is the small town of Knysna that has wealthy property owners.The municipal income is used to pay the salary bill and there is nothing left over for the infrastructure which the Regional; Government has to pay. The rates have been raised at such a rate that people do not want to live there any longer. CUT THE STAFFING!!

  • NH - 2010-06-01 09:55

    It all boils down to GROSS INCOMPETENCE and the law-abiding, tax-paying, hard-working, skilled & competent people like you and me (who incidently has not had a permanent job for many years because I am the wrong colour) will be the ones who suffer by being forced to subsidise the losses.

  • Buddy - 2010-06-01 10:27

    hmmm, why should someone pay the goverment, if they cant even deliver the basic services, i stay in Pietermaritzburg, and i still have driver my rubbish away, cause there is no rubbish collection, then we cant forget the fact that the municipality spend millions on there only little parties last year. boils down to why must i pay for someones fun, when i have to work my ass off just to try and stay alive

  • Richard - 2010-06-01 10:54

    Why are theis account allowed to run up like this,Selective disconnections of non payers

  • Kiwibok - 2010-06-01 11:14

    @Rockman. If you think that is going to change, well think again. If you look at the rest of Africa, I am afraid the future is lloking dark for SA. Only wat to change is to change the government. That is way I dont pay tax in sA anymore.

  • JC - 2010-06-01 11:44

    Here is a question - how much money were the old nats run municipalities owed during apartheid? The new South Africa under the ANC has beome corrupt and inefficient and nowheer shows it more than at a municipal level...There is a lack of skill, and ccustomer service has meant that people refuse to pay, while others still think on a hand out basis. The ANC has set an example right from the top of corruption and greed...peopla are sick of it and refuse t pay for a non existant service.

  • HD - 2010-06-01 11:56

    A number of respondents talk about disconnections. Remember that in many munics (and virtually the whole of KZN) the municipality does not provide electricity. At some not even water. What do you cut then? It's time these utilities work together with the munics.

  • Ir8m8 - 2010-06-01 12:45

    Yeah okay, what about the money that the metro owes the community members, i have been waiting a year for someone to sort out my account so that the refund can happen but to no avail, even the DA ward counciller cant seem to get anything out of them. Sorry but we have inneffective town and city administration in this country and the consumer is supposed to accept it with no recourse on anyone. If you want a job that has 100% security and no responsibility except for the right to strike, hey muncipal services is the career for you.

  • @JC - 2010-06-01 13:09

    your comment is off the mark, during the days of Apartheid, there was a culture of non-payment by the majority which comprised part of the struggle (why should we pay for services and infrustructure that is run and controlled by the NP Government). The biggest problem now is to get that culture removed.

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