Debt owed by provincial government departments to Makana Municipality has not been settled yet and is growing rapidly. Public Works is at the top of the list, owing R11-million for property rates.
Debt owed by provincial government departments to Makana Municipality has not been settled yet and is growing rapidly. Public Works is at the top of the list, owing R11-million for property rates.
The arrear debt situation as at May 2010 is now standing at about R15.4-million with a large chunk being that of the provincial department of Public Works.
During the Budget, Treasury and IDP (BTI) Portfolio committee meeting recently, Chief Financial Officer Jackson Ngcelwane discussed the progress of this debt and said they received a payment from this department of R2.1- million after a series of battles with them.
He said a million rand was also received from Settlers Hospital. Email correspondence attached to the BTI agenda that was sent from Ngelwane to the Provincial Treasury, read that Ngcelwane reported the matter of arrear debt by government departments in late 2008 as well as early 2009 to National Treasury and was referred back to Provincial Treasury with no success.
Ngcelwane said this arrear debt “more especially Public Works keeps on growing at an alarming rate.” He went on to say that 74% of the R15.4-million debt is for the provincial deprtemnt of Public Works and, if they can pay back even 85% of the amount “I can advise my Council otherwise as it will make a difference in our cash flow,” he wrote.
Recommendations for this item were that the BTI committee note and consider the arrear debt report for the month ending May 2010; and that the committee notes that the arrear debt (property rates), belonging to Public Works, has not been settled yet.
