'Stop your nonsense now'

15 May 2015 - 02:19 By Bianca Capazorio

The Department of Co-operative Governance and Traditional Affairs has met the top 20 defaulting municipalities to urge them to pay the billions of rands they owe electricity utility Eskom. Last month, Eskom threatened to turn off the lights for 20 municipalities that collectively owed the utility R3.68-billion.The national Treasury has also threatened to cut off their funding by withholding their equitable share should they not pay.But Gordhan said in his department's budget vote in parliament yesterday that the focus in the coming year would be on reducing municipal debt and improving payments to Eskom.At a media briefing earlier, Gordhan said his department and the top 20 defaulting municipalities had "come to a very concrete understanding regarding arrangements to pay".Deputy Minister Andries Nel told parliament there was a clear action plan to repay the debt over the next six months.Gordhan said there would be a strong focus on recouping municipal debts. Municipalities are owed more than R98-billion. Of this amount, R5.5-billion was owed by government departments, R22-billion by business and R60-billion by households.Gordhan also spoke out against mayors and officials who had recently been reported to have bought new cars valued in the region of R1-million in their final year of office."This nonsense clearly has to stop," he said.He also announced that centralised or "transversal" procurement, which has saved the Department of Health millions in centrally procuring ARVs, would soon be introduced in his department.The traditional affairs side of the department announced that the Khoi and San would soon receive legal recognition, allowing them access to traditional leadership structures in government.Deputy Minister Obed Bapela said parliament would "without a doubt", pass the bill relating to a Khoisan leadership framework.He said once legislation had been passed, the process of verifying leadership would take place...

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