Sol Plaatje Municipality has indicated that businesses owe them R451 million with the highest debtor being a hospital that owes them R28 million as of the end of January.
SOL Plaatje Municipality is billions of Rands in the red while it is struggling to recover money that is owed to them.
Spokesperson for Sol Plaatje Municipality Sello Matsie on Friday indicated that businesses owed them R451 million.
“The highest debtor is a hospital that owes R28 million.”
He added that religious sectors were in the red to the tune of R2, 1 million with the highest institution owing R404,000.
“Indigents households owe a total of R367 million despite the fact that upon approval, the account is written off to R0, by the municipality, the highest account owing R555,000.”
He stated that residential households owed Sol Plaatje over a billion rands, with one house owing R3.8 million.
“Municipal staff, former and some current councillors’ debt amounts to around R9 million, with the highest amount owed by staff being R350,000 and a councillor owing R250,000.”
Matsie indicated that the financial recovery process review that began in February 2020 to address the growing debtor’s book and rapidly deteriorating liquidity status had to be halted when the country was hit by the Covid-19 pandemic and nationwide lockdown.
“As of January 31, Sol Plaatje is heavily indebted to service providers such as Eskom, Department of Water Affairs and other stores and materials suppliers.
“Efforts are in place with the new administration to revive and resuscitate Sol Plaatje Municipality’s financial position and engagements are continuing with National Treasury and other stakeholders.”
He added that they were engaging with both National and Provincial Treasury and the Department of Public Works regarding outstanding debts with a view of ensuring all state departments’ accounts were up to date.
“In light of the dire situation, those in arrears and defaulting customers are requested to visit the municipal offices to discuss their municipal account and balance status and make arrangements to pay their debts.”
Matsie encouraged indigents to bring proof of income and be registered as indigent.
“If you are residing in a deceased estate property, a letter of authority can be obtained from the Master of the High Court.”
He pointed out that action would be taken if electricity metres were by-passed.
“The elderly account holders remain loyal in paying their accounts. Pay your account to finance service delivery, we are in this together.”
