State owes R4.2bn in rates

The government owes municipalities R4.2-billion in rates, said Cooperative Governance and Traditional Affairs Minister Lechesa Tsenoli.

This is according to figures published in a report released in August. "In many instances, government departments dispute the amounts they are billed for by municipalities," said Tsenoli.

For this reason, the department had encouraged the formation of provincial debt management steering committees to resolve disputed accounts.

In July, it was reported that the Department of Public Works owed almost R240- million in rates and taxes.

Of this, R238-million had been outstanding for more than 120 days.

But municipalities were struggling to pay off their own debts. At the end of June this year, said Tsenoli, municipalities across the country owed Eskom R7-billion.

Earlier this year, Eskom threatened to disconnect power to areas in the Free State, North West, Mpumalanga and Gauteng over the non-payment of bills.

Municipalities across the country were also in debt to water boards for R1.9-billion.

Tsenoli said though his department recognised the right to disconnect a service in response to non-payment, it called on "all parties to engage in constructive dialogue aimed at resolving disputes concerning debt owed".