The Free State provincial government owes the troubled Mangaung metropolitan municipality R1.9-billion in rates and taxes.
The mammoth amount owed to the municipality, which is under administration, came to light from a written response by Minister of Finance Enoch Godongwana to DA MP Cilliers Brink on Thursday.
However, this amount is disputed by the municipality, whose spokesperson, Qondile Khedama, said the money owed by the provincial government is R805-million and not R1.9-billion.
Godongwana said the municipality is not just a victim, but a perpetrator as well.
“The municipality still has arrears debt with Bloem Water amounting to R747-million and there is a revised settlement agreement in place that the municipality needs to align with the financial recovery plan targets. In addition, the provincial government owes the municipality an amount of R1.9-billion for rates and taxes,” the minister said.
The Mangaung metro, which houses the provincial seat of government and the Supreme Court of Appeal, is one of 43 municipalities in the country that have been identified as being in financial and service delivery crisis.
Cabinet last week approved an intervention for the Mangaung metropolitan municipality, placing it firmly in the hands of the national government.
Free State provincial government spokesperson Setjhaba Maphalla said: “Please be aware that the provincial government continues to pay Mangaung and Centlec for services as well as rates and taxes. A total of R387-million was paid to Mangaung and Centlec between April 2021 and March 2022; and R326.3-million was paid between April 2020 and March 2021.”
Khedama further explains that according to their figures, the other amount exceeding R572-million is owed by schools for water and electricity.
“More than R1.3-billion of total government debt is from provincial, national, FDC and schools, and is owed for over a year. As at 31 March 2022, Mangaung
Metro owes Bloem Water R523,8-million and not R747-million as indicated,” said Khedama.
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