Durban — KwaZulu-Natal’s leading municipalities are owed more than R30 billion in unpaid debts by government, businesses and residents.
eThekwini municipality revealed last week that at the end of June it was owed R32.28 billion by its customers, with households accounting for 73% of the amount at R23.32bn. uMhlathuze Municipality is owed R807 million. While Msunduzi Municipality did not provide a figure, it was believed that it amounted to billions of rands.
Premier Thami Ntuli acknowledged that greater focus was needed to ensure the financial viability of municipalities across the province.
Speaking after the two-day cabinet lekgotla last week, Ntuli said they had agreed to pay special attention to local government and ensure its viability.
“We agreed to walk hand-in-hand with municipalities in our new collaborative approach that is not intervention-driven,” said Ntuli.
He wanted to make local government efficient, and the anchors of economic development.
“But this will not happen if debt owed to municipalities goes unpaid. This government will take municipalities seriously and has committed to pay what it owes. We urge citizens and businesses to do the right thing and pay for municipal services,” said Ntuli.
In his maiden budget speech last week, newly appointed Finance MEC Francois Rodgers said the challenge was having to provide goods and services in a subdued economic climate.
“The provincial government understands the current socio-economic outlook and the direct impact that it has on the province and its citizens. There is no miracle or overnight cure for the diagnosis/position that we find ourselves in,” said Rodgers, indicating that tough decisions had to be made to navigate the tough course.
Part of ensuring greater efficiency, the MEC added, included applying and following the principles of good governance, good financial management, and a zero stance against corruption and fruitless and wasteful expenditure. He said tight financial controls would allow government to direct more funds towards service delivery.
“It is on this score that we implore Heads of Departments, Chief Executives Officers of public entities’ Chief Financial Officers and senior management officials to share notes on good practice and experiences to improve public service,” Rodgers said.
He acknowledged that the journey towards a prosperous province would be a long and difficult one, but expressed confidence in the team of public representatives leading government.
“The journey will be a long and bumpy road with detours and speed humps but with the commitment of all politicians and public officials to utilise funds wisely and effectively in accordance with the Public Finance Management Act, we will not only reach our end destination but we will arrive with petrol in our tanks,” said Rodgers.
Sunday Tribune