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Provincial and national government departments owe Mbombela R136,3 million

According to the replies to questions posed to the Mbombela Local Municipality (Mbombela/Nelspruit, Barberton, Hazyview, Kaapsehoop, Skukuza, White River), it seems that various provincial and national government departments owe Mbombela approximately R136,3 million.

The Mayor, Sibongile Makushe, confirmed that the amount includes fees for services rendered and leasing properties.

The national government departments' total debt amounts to R51,6 million. Of that R26 million is owed in interest seeing as the payments have been outstanding for periods of more than 90 days.

The provincial Department of Public Works, Roads and Transport's total debt to the Municipality amounts to nearly R51 million and forms part of the total debt owed by the provincial government, which adds up to about R84,6 million.

The debt of the provincial Department of Education amounts to R20 million. The rest of the outstanding debt is owed by various other departments.

If the provincial government settles its debt, it will already solve many of the Municipality's cash-flow problems.

Provincial departments that fail to settle their debt to Mbombela are effectively denying residents the good quality service delivery that the Municipality is supposed to provide to them.

It is unacceptable that government departments' poor planning and reckless financial management are devolving to local government to the detriment of residents.

The government owes itself money and the seemingly endless transfer of the debt burden from one level of government to the next must not be tolerated.

The FF Plus is of the opinion that the ANC on the whole must honour its commitment to improving services by implementing income-improvement strategies with regard to taxpayers' outstanding debt.

 

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