Joburg councillors accumulate R2.7 Million in unpaid rates and taxes

Joburg councillors accumulate R2.7 Million in unpaid rates and taxes

The City of Johannesburg councillors owe the municipality R2.7 million in unpaid rates and taxes.

City of Johannesburg councillors owe the municipality

At least 11 have overdue payments of more than three months, while the city could withhold R7 million from the salaries of non-compliant councillors and other employees last year.

Kgamanyane Maphologela, director of customer communications for the city’s group finance department, noted that this represents a significant decrease compared to previous months.

According to Sowetan Live, Maphologela mentioned that the city administers the rates and taxes municipal accounts of 113 councillors through internal staff deductions.

“At least 90% of these accounts are compliant in paying their debt regularly. This is proof that the city’s internal Credit Control initiative, educational and awareness drives are bearing fruit,” he said.

“The non-compliant accounts are subject to the city’s normal Credit Control and Debt Collection processes; whereby an arrears account which has not entered payment arrangement will result in water or electricity disconnection being carried out until the account is paid in full.”

Maphologela highlighted that the city was among the first metros to announce its focus on recovering municipal service debts from its employees and councillors late last year.

“The credit control action that is taken by the city against its own employees and councillors is to demonstrate that the city goes after anyone who owes the city in unpaid municipal bills.

“It’s a firm demonstration that the city’s Credit Control policy is enforced indiscriminately including against the city’s own employees and councillors, whom the city expects to be exemplary in their conduct.”

As per the Municipal Structures Act, it is unlawful for councillors or any municipal employee to have outstanding debts to the institution they serve.

Top five municipalities with the highest debt to Eskom

None of the metropolitan municipalities in the country are included in the top five, owing Eskom billions of rand.

According to information provided to TimesLIVE by Eskom, the Maluti-a-Phofung local municipality in the Free State holds the highest debt, owing R7.2 billion. Following closely is the Emalahleni local municipality in Mpumalanga, with a debt of R7.1 billion to the power utility.

Emfuleni, a local municipality in Gauteng, ranks third on the list, owing R5.8 billion, followed by the Free State municipality, Matjhabeng, which has a debt of R5.2 billion.

Ranked fifth on the list, the Govan Mbeki local municipality in Mpumalanga owes R3.6 billion in debt.

According to BusinessLIVE, although Eskom has formulated a debt management strategy, it stated that only a few municipalities have engaged in active agreements with the utility.

However, there is hope for financially strained municipalities as the government remains committed to providing relief to those unable to settle their debts with Eskom.

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