Staff reporter
Bloemfontein – The Mangaung Metropolitan Municipality (MMM) is owed, a combined R11 billion in total.
This revelation follows our we published previously.
The only Metropolitan municipality in Free State is owed by everyone from national and provincial government, residents, and business:
- Free State Provincial Government owes Mangaung about R1.3 billion,
- National Government R400m,
- Residents R7 billion,
- Business R2 billion
While the City has not yet indicated any plans to recover moneys owed, City of Tshwane recovered millions owed in debt.
The Pretoria based municipality went after South African Revenue Services for R884 000 debt. No one goes after SARS but CoT went after it.
It was the DA led administration that recovered the money both in Tshwane and Jo’burg.
SCA ruling
In City of Tshwane v Vresthena Pty Ltd, the Supreme Court of Appeal (SCA) had to determine whether a municipality could be interdicted from implementing its credit control by-laws, which provides for the termination of electricity supply in the event of non-payment.
Thus, to ensure the financial sustainability of municipalities, the Court emphasised that there is a reciprocal obligation on municipal customers to pay for services and a constitutional duty on municipalities to implement debt collection measures if debts are not paid.
The Metro is facing serious service delivery challenges that require money, on the 17 January 2025, it held its property indaba and on the 18 and 19 February 2025, the City will host Investment summit.
In other related news, the Free State Development Corporation (FDC) known for the R104 million VBS investment is refusing to name individuals and companies it funded.
The list according to sources include ANC big wigs who under Ace Magashule, took business loans only to buy properties and today, they can’t repay the loans and FDC is doing nothing.
Kgotso Tau, acting Chief Executive Officer of Free State Development Corporation did not respond to our questions.
Maybe if questions are sent by political parties in the legislature FDC will respond.
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