Question NW3504 to the Minister of Public Works and Infrastructure

Reply:

1. (a) I am informed as follows by the Department of Public Works and Infrastructure:

(i) Walter Sisulu Local Municipality (Gqeberha/PE Region):

The age analysis obtained from the Municipality as at 30 June 2022 reflects an outstanding amount of R 7.6 million, the engagements have commenced with the Municipal Manager and DPWI Senior Managers to verify and reconcile, after which DPWI will then make payment within 30 days of receipt of invoices. The amount owed is broken down as follows:

• • • DPWI accounts: R 5.2 million; and
    • Unknown accounts: R 2.4 million.

Unknown accounts are the accounts that do not belong to DPWI and the Municipality continue to bill DPWI.

Walter Sisulu Local Municipality (Umtata Region):

The age analysis obtained from municipalities as at 30 September 2022 reflects an outstanding amount R436 675.32. The amount owed relates to the current month billing for rates and taxes for 2022/2023 financial year (age analysis attached with the confirmation letter from the Municipality). The accounts outstanding are current and up to date.

DPWI does not pay annual property rates in advance but pays them programmatically on a monthly basis which is also applicable for Senqu Local Municipality. While municipalities may be reflecting the annual property rates as due and payable, and invariably overdue, there are few instances where invoices are not paid within 30 days.

(ii) Senqu Local Municipality:

As per the age analysis obtained from municipalities as at 31 August 2022 reflects an outstanding amount of R1.2 million broken down as follows:

• • • Municipal services: R415 217.25 (with R349 000 not yet allocated after the payment run).

R66 217.25 (R415 217.25 – R349 000) is part of the payment that cleared in September 2022 but not yet allocated.

• • • Property rates: R557 505.20 annual claim as outlined above for 2022/2023 financial year; and
    • Leased building: R231 285.33 long overdue lease rental accounts that is currently being investigated.

(2)

Walter Sisulu Local Municipality (Gqeberha)

#	User Department	Category	No. of Accounts	Mun. Services	Rates & Taxes	Arrear Amount
				R
1	Correctional Services	Known Accounts	4	627 431,55	1 985 255,02	2 612 686,57
2	Justice	Known Accounts	7	305 609,28	146 724,28	452 333,57
3	NDPWI	Known Accounts	10	0,00	561 410,18	561 410,18
4	SANDF	Known Accounts	6	0,00	76 882,58	76 882,58
5	SAPS	Known Accounts	18	72 898,77	902 687,41	975 586,19
6	Water Affairs	Known Accounts	34	0,00	510 348,50	510 348,50
7	Unknown		49			2 418 234,24
TOTAL	128	1 005 939,61	4 183 307,98	607 481,83

Walter Sisulu Local Municipality (Mthatha)

The Municipality has confirmed that the Mthatha regional office is up to date with the payments.

Senqu Local Municipality:

#	User Department	Category	No. of Accounts	Municipal Services
1	Correctional Services	Known Accounts	4	95 281,18
2	Justice	Known Accounts	4	55 980.99
3	labour	Known Accounts	2	9 850.2
4	SAPS	Known Accounts	12	188 569,69
5	Home Affairs	Known Accounts	2	65 535,19
TOTAL	24	415 217,25

• Rates and Taxes: R557 505.20 that relates to property rates for 2022/2023 financial year (See confirmation letter from the Municipality); and
• Leased building: R231 285.33 long overdue lease rental accounts that is currently being investigated.

 

(3)

Walter Sisulu Local Municipality (Gqeberha)

DPWI’s Gqeberha Regional Office has been in contact with the Municipality and a visit to perform an extensive reconciliation of the known accounts is arranged for 17- 21 October 2022. The objective is to conclude the reconciliation and settle the reconciled outstanding amount by the end of November 2022.

However, DPWI will only process the amount due upon the completion of the reconciliations and the submission of accurate invoices and supporting documents by the Municipality.

Notwithstanding the above, DPWI made payments of R 734 479, 41 for Rates & Taxes, and R 213 267, 43 for municipal services (utilities) during September 2022. This is a clear demonstration and continuous endeavours by DPWI to ensure that all valid invoices from municipalities – as it is with other creditors – are settled timeously.

Walter Sisulu Local Municipality (Mthatha)

DPWI has no arrear debt on municipal services and property rates and is busy with the current billing.

Senqu Local Municipality:

The Department’s Mthatha Regional Office will meet with the Senqu Municipality and perform an extensive reconciliation for the overdue amount relating to the leased building on 1 November 2022, to resolve and conclude the matter by 30 November 2022.