Mkhize: Govt, provincial depts owe municipalities close to R10 bn

Minister Zweli Mkhize said the debt continues to grow due to accruing interest and the failure to service arrears.

Cooperative Governance Minister  Zweli Mkhize. Picture: @NationalCoGTA/Twitter.

CAPE TOWN - Cooperative Governance and Traditional Affairs (Cogta) Minister Zweli Mkhize has revealed the amount of money owed to municipalities by national and provincial government departments has risen to nearly R10 billion.

“Funds owed to municipalities by national and provincial governments remains a serious matter. The debts owed by organs of states was R6.3 billion as of 1 December 2016 and went up to R9.7 billion by 31 December 2017.”

Mkhize said the debt continues to grow due to accruing interest and the failure to service arrears.

But he says efforts are underway to claw back the cash: “Cogta, in collaboration with Treasury, has set up numerous measures in place to assist the municipalities to recover the amounts owed by organs of the state and to facilitate the resolutions of dispute by the organs of state and municipalities.”

(Edited by Mihlali Ntsabo)