Gauteng residents, businesses owe Gauteng municipalities R49bn – MEC
Gauteng municipalities are owed approximately R49-billion by residents and commercial customers, Finance MEC Barbara Creecy said on Sunday.
A household debt of R31.8-billion, for services and taxes by residents, was the largest amount outstanding.
"This amount represents 65% or the largest share of debt due to municipalities for services in the province," Creecy said.
Commercial customers owed R13.5-billion – approximately 27% of the debt. Government debtors accounted for 3% of the total outstanding amount. Creecy said that the debt for water (R14.6-billion) accounted for nearly a third of the amount still owing.
Property rates and electricity debtors owed 19% (R9.1-billion) and 18% (R8.8-billion) respectively.
Among the reasons cited for the debt were: disputes over the ownership of properties liable for municipal accounts; incorrect billing; the slow process of opening new municipal accounts; and the transfer and registration of RDP houses.
Furthermore, Creecy said, certain municipalities submitted their invoices late and others failed to split monthly accounts according to services and property rates.
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