Residents owe Gauteng Municipalities R2.7 billion

Issued by Adriana Randall MPL – DA Gauteng Shadow MEC For Finance and e-Government
28 Jun 2020 in Press Statements

The Democratic Alliance (DA) in Gauteng is deeply concerned that the Covid-19 pandemic has had a negative impact on municipalities as residents are struggling to pay for services provided by municipalities.

This information was revealed to me by the MEC for Finance, Nomantu Nkomo-Ralehoko to my questions tabled in the Gauteng Provincial Legislature (GPL).

According to the MEC, between April and May 2020 debtors increased by R2.7 billion. However, Mogale City did not submit any information on its debtors, and it is expected that this total will go up once they have submitted.

The table below indicates the monthly trends of debtors for April and May 2020:

Municipality April 2020 May 2020 Difference
EMM R15, 858,942 R16, 212,240 R353,298
COJ R29,664,931 R31, 155, 951 R1,491,019
TSH R15,285,694 R15, 864,516 R578,821
Emfuleni R9,121,795 R9,249,420 R127,625
Midvaal R420,183 R427,694 R7,510
Lesedi R938,200 R938,261 R61
Sedibeng District R68, 095 R70,799 R2,703
Mogale City R1,829,729 R1,829,729
Merafong R2,539,382 R2601,774 R62 393
Rand West City R700,222 R772,010 R71,787
West Rand District R27,797 R27,965 R168
TOTAL R76,454,961,600 R79,150,356,327 R2,695,384,727

If this trend in revenue loss continues, then municipalities will struggle to render services to its residents.

Some municipalities have already been struggling to provide services because residents have not been paying, however, the Covid-19 pandemic has worsened the situation.

The DA calls on the MEC for Cooperative Governance and Traditional Affairs, Lebogang Maile to closely monitor how the municipalities used the Covid-19 relief fund to ensure that adequate services are rendered to Gauteng residents in these difficult times.