Municipalities only likely to recover about R22.7 billion of R117.9 billion owed by consumers
Consumers owed municipalities R117.9bn in the second quarter ended December 31 2015 – but if the debt is limited to less than 90 days‚ only about R22.7 billion of this is realistically recoverable‚ a National Treasury report reveals.
According to the report - the Local Government Revenue and Expenditure: Second Quarter Local Government report - a total amount of R574 million has been written off as bad debt.
Metropolitan municipalities were owed R64.4bn compared to R63.1bn in the first quarter – and increase of R9bn‚ or 16.3% - with the City of Johannesburg still owed the largest amount – R26.1bn.
It was followed by Ekurhuleni Metro with debt of R13.6bn‚ the City of Tshwane which is owed R7.5bn and Cape Town where R6.9bn is owing.
Households in metropolitan areas are reported to account for R42.1bn or 65.3% of outstanding debt to metros‚ followed by businesses which account for R18.4bn or 28.4%. Debt owed by government agencies is approximately R1.6bn or 2.5% of the total outstanding debt owed to metros.