VIDEO | Mangaung owed R11 billion as metro intensifies revenue collection efforts – More

Staff reporter

Bloemfontein – Mangaung Metropolitan Municipality is owed approximately R11 billion by residents, government departments and businesses, a situation that continues to hamper the municipality’s ability to improve service delivery.

This was revealed by Mangaung City Manager Sello More, who said the municipality is currently collecting about 75% of revenue from known debtors while implementing measures aimed at improving collection rates.

According to More, residents account for the largest portion of the debt, owing the municipality about R7 billion..

He said the municipality’s ability to deliver services is directly linked to its ability to collect revenue.

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More further revealed that government departments owe the municipality approximately R2 billion.

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While businesses owe a similar amount.

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He welcomed recent discussions at national level aimed at compelling government departments to settle their municipal accounts.

More said municipalities across the country have long called for stronger measures to ensure government departments pay for municipal services.

“You can imagine what we could do with about R2 billion,” he added.

Businesses were also urged to honour their financial obligations to the municipality.

“Our businesses are complaining about services and how we service them, but they are owing us as well,” said More.

In addressing residential debt, More said the municipality is intensifying efforts to register qualifying residents as indigent while dealing with uncollectable debt.

He noted that some residents who are unable to pay for municipal services have not registered for indigent support, contributing to growing debt levels.

More explained that the municipality’s budget is largely dependent on projected revenue collections, with service delivery programmes relying heavily on funds recovered from residents and businesses.

“The budget is aimed at ensuring that services such as roads, water and refuse removal are provided. A large part of what we can implement depends on what we can collect,” he said.

While grants from national government provide some stability, More acknowledged that revenue collection remains a challenge.

Despite this, he said Mangaung remains committed to improving collections and ensuring that resources are available to maintain infrastructure and deliver services to communities across the metro.

Will More switch of water like he did last year?

In other Municipality related news, Schalk Burger from Afriforum welcomed the dissolution of Ngwathe Local Municipality and said they are looking forward to meeting Dr Solly Motingoe, the administrator. Afriforum dragged Ngwathe to court and won, they now use forced FSPG to dissolve Ngwathe Local Municipality.

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