Question NW271 to the Minister of Cooperative Governance and Traditional Affairs

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07 April 2016 - NW271

Profile picture: Groenewald, Mr HB

Groenewald, Mr HB to ask the Minister of Cooperative Governance and Traditional Affairs

(1)What is the sum total accrued in respect of arrears service fees that are owing by (a) individuals, (b) businesses and (c) state institutions to municipalities across the country for (i) electricity and (ii) any other services as at the latest specified date for which information is available; (2) Whether he will make a statement on the matter?

Reply:

According to the report compiled by the National Treasury in terms of section 71 of the MFMA, as at September 2015, the categories of debtors set out below have arrears on electricity and other services including sewerage, refuse removal and water. The debtor amounts reflected below are exclusive of interest.

  1. (a) Individuals

Service

Arrears on service fees excluding interest (R ‘000)

  1. Electricity

R3,772,823 billion

  1. Any other services (excluding property rates)

R20,110,377 billion

(1) (b) Businesses

Service

Arrears on service fees excluding interest (R ‘000)

  1. Electricity

R5,102,455 billion

  1. Any other services (excluding property rates)

R2,983,647 billion

(1) (c) Sate Institutions

Service

Arrears service fees excluding interest (R ‘000)

  1. Electricity

602,587 million

  1. Any other services (excluding property rates)

989,179 million

2. My department, in consultation with other stakeholders, has taken various initiatives to curtail the non-payment of municipal arrear debt. These initiatives include auditing and verification of the outstanding government debt, the verification entails confirming whether invoices that are contested by government departments are correct. The team is also ensuring that municipalities have enforceable credit control policies and by-laws.

I will consider whether or not to make a statement in due course.

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