Finance and Economic Opportunities

With regard to the reported R837 million owed by the national Department of Public Works and Infrastructure to municipalities in rates and taxes:

1. Whether the reported amount of R274 342 786 owed to Western Cape municipalities for the first two months of 2022 is correct; if not, why not; if so, what are the relevant details.

Answer:

In terms of the figures reported by municipalities in terms of section 71[6] of the Municipal Finance Management Act [Act 56 of 2003], the net outstanding debt owed to municipalities in the Western Cape by all other organs of state at the end of February 2022 was R173.006 million. Of this amount, R84.219 million was owed by the national Department of Public Works and Infrastructure.

These numbers are drawn from the data strings submitted to the National Treasury’s database as required in terms of the MFMA regulations. The veracity of the data depends on credibility of the information contained in the reports submitted by Municipalities.

2. What is the total debt of the national Department of Public Works and Infrastructure for rates and taxes to all Western Cape municipalities from January 2022 to date?

Answer:

The table below shows the amounts owed by the national Department of Public Works and Infrastructure to Western Cape Municipalities from 31 January 2022 until 31 March 2022. This is the most recent data available. The table shows the amounts owing for service charges and property rates and also sundry and City Improvement Districts payments [usually credit payments that are offset against the amounts owed to reach the net amount owed].

The net amount owed declined from R106.608 million in January 2022 to R84.218 million in February 2022, before increasing to R96.907 million in March 2022.

Table 1: National Department of Public Works and Infrastructure organ of state debt from January 2022 till March 2022

Source: WC Municipalities Government Debt Schedule - February 2022

A breakdown of these amounts per individual municipality is attached hereto in Annexure A.

Provincial Treasury facilitates monthly and quarterly debt technical committee meetings to monitor the progress on undertakings between the Government Departments and the Metro and Local Municipalities to ensure that disputes are resolved and outstanding accounts are paid.