billion are unfounded
25 August 2006
The Department of Local Government and Housing rejects recent unfounded
media reports that municipalities in the province are owed more than R1,6
billion by government and the private sector. The reports follow the
circulation of an internal working document that was being used to collect
certain information from municipalities, and which was erroneously sent
out.
The department would like to state that it has begun a process of assisting
municipalities verify and reconcile debts that are owed to them. The department
has also requested government departments and private institutions to reconcile
their accounts with the municipalities so as to determine the exact amounts
owed, if any. The reconciliation will assist with eliminating the disputes,
that some of the debtors have raised against the debts those municipalities
allege they owe.
It is only after government departments, private institutions and the
municipalities have completed the verification and reconciliation process that
we can determine the exact amount owed, if any. It is therefore misleading to
allege that municipalities are owed more than R1,6 billion. It is important to
note that we have cases where municipalities have received payment from some of
these institutions, and yet their records indicate that no payments have been
made. This therefore indicates that there is a need for verification and
reconciliation to be done. The department has also requested municipalities to
make sure that they update their account systems, to make sure that all
accounts are up to date. Once the verification and reconciliation processes
have been completed, the department will then be in a position to comment
further on the matter.
The provincial cabinet has also taken a decision that all departments must
pay any monies they have outstanding to municipalities.
Contact person:
Simphiwe Kunene
Cell: 082 413 3931
Issued by: Department of Local Government and Housing, Mpumalanga Provincial
Government
25 August 2006
