East Cape councils owed billions

EASTERN Cape municipalities are owed more than R7.3-billion in unpaid rates and services, by residents, businesses, councillors and government departments, as at December 31 last year.

A report, tabled at a South African Local Government Association (Salga) meeting in Port Elizabeth, reveals 45 provincial municipalities are owed a combined R26-million by councillors and R14-million by municipal officials.

Nelson Mandela Bay and the Buffalo City Metro (East London) are owed a combined R3.8-billion in unpaid rates by residents, businesses, councillors, municipal officials and government departments.

According to Section 12(a) of the Municipal Systems Act "a councillor may not be in arrears to the municipality for rates and service charges for a period longer than three months".

The report also shows that provincial government departments owe municipalities R331-million for rates and services.

It highlighted that Roads and Public Works alone owed municipalities more than R131-million. - Mphumzi Zuzile