The Department of Public Works and Infrastructure (DPWI) says it has received age analysis reports from 210 municipalities, confirming that R83-million is owed to municipalities for services rendered and property rates as at July 31.

The department is waiting for municipalities to provide invoices, with payments to be processed as soon as invoices are received.

"The DPWI at all times strives to stay up to date with its payments to municipalities who provide services to government buildings," says Public Works and Infrastructure Minister Patricia de Lille.

The DPWI processes all valid and verified invoices received within the stipulated timeframe indicated by municipalities since their invoices are due and payable within the regulated 30 days of receipt of invoice.

The department has made payments across all 257 municipalities for municipal services and property rates to the value of R1.26-billion from April to July. July’s payments to municipalities totalled R228-million.

The rate of invoices paid within 30 days increased from 96% in June to 98% in July.

“This is a clear demonstration of continuous endeavours by the DPWI to ensure that all valid invoices from municipalities, as it is with other creditors, are settled timeously,” De Lille notes.

Meanwhile, an amount of R170-million, as at July 31, is under investigation, as the DPWI is in the process of performing reconciliation with the municipalities to ensure correct payment.

Further, an amount of about R67.2-million has been billed as an annual invoice, which the department pays programmatically on a monthly basis, as the department does not pay in advance, the Minister points out.

Additionally, just more than R12-million was incorrectly billed to the department despite extensive communication with the municipalities.

To address the disputes under the R12-million amount, the DPWI is engaging municipalities to waive the interest linked to properties of other custodians and advising municipalities to direct the invoices to the rightful owners for future payments, she says.

Further, an amount of just more than R324.5-million is also in dispute in terms of property rates and taxes as at July 31.

"To address these disputes, the DPWI is requesting the municipalities to waive the uncorroborated interest, and verify ownership or custodianship of the properties submitted – in some of these cases, the land on which DPWI properties are situated does not belong to the DPWI and this poses a challenge when invoices are received since billing is not based on the footprint of the DPWI property but the entire extent of the land parcel," De Lille explains.

Further, the department has started a process of sub-dividing or surveying these properties but more information is still required from municipalities to target those causing arrears or backlog debt.

The DPWI is also undertaking a pilot surveying project in Limpopo to ensure ownership of State properties is corrected. Lessons learned from the process will be implemented in other provinces when funds are identified.