Cooperative and national government departments owe municipalities a whopping R29.4 billion in rates and services, says Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa.
“All departments should pay what is due to municipalities.
“How do we expect municipalities to be able to pay Eskom and water boards if the government both at provincial and national levels is not paying what is due to municipalities,” Hlabisa said.
He was responding to an oral question from ANC MP Phumelele Ndamase, who asked what his department intended to do to support the National Treasury and the Water and Sanitation Department to resolve the debt municipalities owed to water boards.
“This is a vicious cycle. The municipalities are owed by departments, nationally and provincially. If you want municipalities to pay for water, departments must pay municipalities,” the minister said.
Also owing the municipalities were businesspeople.
In resolving the debt owed to water boards, the Minister said the department was involved in the debt review committee working with the National Treasury to finalise the debt write off mechanism.
“This mechanism aims to allow water boards to forgive historical debt contingent upon municipalities establishing solid payment records for current obligations.
“We believe this initiative will foster financial sustainability within municipalities by encouraging a commitment to fiscal discipline as fundamental.”
Hlabisa also said Cogta intended to collaborate with the municipal recovery unit within the National Treasury to ensure that financial recovery plans prioritise long term financial sustainability.
He added that water losses significantly impacted municipalities in serving their debts to the water boards.
“There will be heightened focus on enhancing infrastructure and prioritising repairs and maintenance.”
Hlabisa stated that the grant funding would allow permission to allocate 10% of the Municipal Infrastructure Grant towards repairs and refurbishment starting in this financial year.
Meanwhile, Cogta was taking immediate steps to identify and address instances of corruption within municipalities, particularly involving supply chain and finance officials who allegedly demand bribes before processing payments to businesses.
According to Hlabisa, they were strengthening transparency and accountability by enhancing disclosure requirements for tender processes and promoting whistle-blower protection.
There was also capacity building of officials and collaboration with law enforcement agencies to investigate and prosecute corruption as well as ensuring swift action against those found guilty of corruption.
Cape Times