GAUTENG Cooperative Governance MEC Lebogang said on Monday that the provincial government was owed just over R79.8 billion for the non-payment of services.
He said 75% of this debt was owed by household consumers.
Maile revealed this during the release of a report on the State of Municipalities across Gauteng in Sandton, Johannesburg.
He said the Joburg and Tshwane Metros are responsible for the bulk of the unauthorised, irregular, fruitless and wasteful expenditure.
He further revealed that only the City of Ekurhuleni, Merafong and Midvaal did not incur unauthorised spending.
Maile said unauthorised, fruitless, and wasteful expenditure in the 2021-2022 financial year amounted to over R23 billion.
The outstanding debt that Gauteng municipalities owed Eskom increased from R9.4 to R9.7 billion in the past financial year.
He said Rand Water was also owed billions of rands.
“Cogta in the province together with the Treasury continues to engage Eskom for amicable solutions to deal with the overdue debt owed by Gauteng muncipalities,” said Maile.
“According to Rand Water, at last count the outstanding amount owed by municipalities increased from R2.94 billion to R3.15 billion with the City of Joburg and Midvaal reporting to have only current accounts.”
The City of Johannesburg and Midvaal Local Municipality were reported to have only current accounts, according to Rand Water.
“The City of Ekurhuleni is on the extended payment term relief programme to pay 70% of the bill and settle the 30% within 45 days.
“The city is adhering to the relief options terms and conditions. Rand Water attached Emfuleni’s bank account in December 2021 but that was changed after a payment of R252 million was made by the municipality.”
Maile said Cogta along with the provincial treasury established a Debt Management Committee (DMC) to facilitate a process of resolving government debt.
“The DMC has managed to facilitate payments to municipalities amounting to R 12.9 billion, with the biggest beneficiary being the City of Johannesburg at R 5, 6 billion, followed by the City of Tshwane at R3, 3 billion.”
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