Rates latest: Government debt soars to R2.4bn as consumers battle

As ratepayers and residents struggle to cope with spiralling property rates and electricity prices it has emerged that government departments in KwaZulu-Natal owe municipalities more than R2.4 billion in outstanding rates and services.                                                                                     

This figure was confirmed during a parliamentary response by the province’s Treasury Department to questions raised by the Democratic Alliance (DA)               DA member of the provincial legislature and spokesperson on Cooperative Governance and Traditional Affairs (CoGTA), Chris Pappas, said: “This finding comes as many municipalities are hiking rates and tariffs as part of their annual budget processes – with many of these increases above inflation – or adding to the increases passed down from NERSA (National Energy Regulator of SA) or their respective Water Authorities,” Pappas said.

“As our country enters lockdown Level 4, on the back of months of repetitive restrictions, the citizens of KZN cannot afford to carry the burden of government departments that are not paying their bills.”

DA member of the provincial legislature and spokesperson on Cooperative Governance and Traditional Affairs (CoGTA), Chris Pappas

According to the reply, the departments that owe the most in terms of rates included:

• KZN Public Works – R708.4 million
• National Public Works – R206.6 million and
• Ingonyama Trust – R340.8 million.

In terms of municipal services, the following sums were outstanding;

• KZN Education – R378.7 million
• KZN Public Works – R18.8 million
• National Public Works – R79.7 million
• KZN Human Settlements – R16.5 million and;
• KZN Transport – R14.6 million.

“Of particular concern to the DA is that municipalities have embarked on what they are calling “revenue enhancement programmes” which are aimed at collecting outstanding debts from residents. This while government departments owe tens of millions of rands and are not being targeted,” he said.

“Many of KZN’s municipalities have collapsed and service delivery is no longer being rolled out. The lack of capacity, cadre deployment and lack of political will are amongst the biggest causes for this. The failure by provincial and national departments to pay their debts is clearly yet another contributing factor to the lack of financial viability of our municipalities,” Pappas said.

Pappas added that the DA would be calling for representatives of the delinquent departments to appear before KZN’s CoGTA portfolio committee at a special meeting to explain the outstanding rates and services bills. “They need to explain why they are not paying for rates and services and what mechanisms they are putting in place to ensure that they catch up on arrears,” he said.