(a)(b) (c) Annexure A: Attached provide details of total amount owed as at 30 September 2017, interest amount included in the total debt and age of debt for each of the 61 specified Municipalities.
Numerous requests were sent to Eskom requesting latest available information, to date we were not able to get the requested information.
With regard to the municipalities that are struggling to pay Eskom, the department is implementing the following interventions:
1. The simplified revenue plan
During the period 2016/17 financial year to 2017/18 financial year, the department has identified a total of 30 municipalities countrywide support on development and implementation of simplified revenue plans, from these 30 municipalities, three were from the North West Province i.e. Ditsobotla, Moses Kotane and Naledi local municipalities. The simplified revenue plan is aimed at achieving improved revenue management, reduction of municipal consumer debt, protection and enhancement of the municipality’s revenue collection potential.
The municipalities supported were assisted with the following initiatives that resulted on improvement of debt collection:
The project has been extended to four more municipalities in the North West Province for the period 2018/19 to 2019/20 financial years, these are Kgetlengrivier; Maquassi Hills, Mamosa and Tswaing.
2. Property and consumer database
The department has also initiated a project on development of spatially enabled integrated property and consumer database for municipalities. The project focus is on municipal data integrity which will provide municipalities with a platform to access up to date data from a central point hosted by the department and once fully implemented will assist on improving the revenue collection.
3. Executive Intervention on the non-payment of Eskom and water service authorities
At an Executive level; the minister of CoGTA chairs an Inter-Ministerial Committee (IMTT) which provides political direction on the non-payment of electricity and water debt. The IMTT was established to deal with Constitutional, Systemic and Structural Challenges in electricity reticulation. The scope was further extended to include bulk water related debt.
The IMTT was established based on the principles of the Intergovernmental Relations Framework Act, 2005 (Act No 13 of 2005) and the members are: the Minister for Cooperative Governance and Traditional Affairs (as Chairperson). The Minister of Finance, the Minister of Energy, the Minister of Water and Sanitation, the Minister of Public Enterprises, the President of SALGA; and the Chairperson of the Eskom Board. The IMTT has so far achieved the following in making the bulk payments more affordable:
The South African fiscal framework is built on a clear set of functional (expenditure) assignments for basic local infrastructure services delivery such as water services, electricity distribution, solid waste, and local roads and transport in addition to important regulatory authority over spatial planning and development control. These functions are financed predominately through locally controlled revenue sources, such as user fees and the property tax.
Section 96(a) of the MSA, states that municipalities must collect all monies due and payable to it, while Section 96(b) empowers a municipality to undertake this debt collection in terms of adopting a credit control and debt collection policy. Even though that legislative provision is very clear, municipalities are in general still encountering challenges on the collection of outstanding debt.
Some municipalities are failing at effectively delivering services, billing for services and collecting the revenue due. Consequently, outstanding debtors are increasing and they are not able to maintain positive cash flows to pay creditors within the thirty days timeframe as legally prescribed.
The “culture of non-payment by consumers to municipalities affects and results to inability of municipalities to service its creditors. This has been evident in the increase in municipal creditors and debtors book.
It is evident that non- payment of municipal debtors is mostly due to the weaknesses on the municipal systems in implementing relevant sections of the legislations and the implementation of their credit control and debt collection policies.
The Department (DCoG) identified a strategic intervention aimed at enhancing the municipal revenue management and debt collection system in local government. The development and implementation of municipal-specific revenue plans was identified and is currently being rolled out in selected municipalities.
The selected municipalities are identified to be part of the Simplified Revenue Plan Project through the Back to Basics (B2B) programme and by assessing the level of outstanding debt of each of the municipalities. The funding for the project has been set aside from the Municipal Systems Improvement Grant (MSIG).
Project objective
The objective of the Simplified Revenue Plan Project (SRP) is to assist municipalities through Service Providers (SPs) to review and improve the generic replicable model of the revenue plan. Once that is done, the reviewed model would be rolled-out or implemented at each of the participating municipalities. The successful implementation of the revenue plan would result in improved revenue management, reduced municipal consumer debt and protection of municipal revenue.
Support to municipalities through the SRP
The following on-going support and assistance has been provided to municipalities:
The above support is informed by the initial assessment conducted by the SPs at the inception of the project; the assessment is made by testing the entire revenue management value chain of a municipality; identifying deficiencies and then developing a municipal specific plan to address them.
Impact thus far:
Challenges
Lack of capacity in the revenue management cycle, be it metering, billing, customer care, disconnections, credit control and debt collection, etc.
The state of trading services’ infrastructure is a serious cause for concern; this infrastructure has been neglected over many years when it comes to maintenance and replacement where necessary.
Lack of political and management buy-in in some instances to play an active role on municipal revenue collection.
Annexure A
Table 1: Detail of Total amount owed as at 30 September 2017; Interest amount included in the total debt and Age of debt for each of the 61 specified municipalities
(a) |
(b) |
(c) |
|||||
MUNICIPALITY |
TOTAL DEBT 30_Sep_2017 |
INTEREST |
CURRENT DEBT |
30 DAYS |
60 DAYS |
90 DAYS |
>90 DAYS |
EASTERN CAPE DEMARCATED PROVINCE |
|||||||
DR BEYERS NAUDÉ LOCAL MUNICIPALITY |
34 314 514 |
144 721 |
16 113 394 |
13 948 |
10 014 233 |
8 172 939 |
0 |
INXUBA YETHEMBA LOCAL MUNICIPALITY |
44 366 135 |
1 708 631 |
8 143 502 |
0 |
8 691 147 |
4 476 280 |
23 055 206 |
KING SABATA DALINDYEBO MUNICIPALITY |
101 074 779 |
2 519 227 |
26 047 098 |
23 608 |
36 482 726 |
28 979 573 |
9 541 775 |
MAKANA LOCAL MUNICIPALITY |
80 692 139 |
1 068 315 |
13 518 941 |
23 608 |
57 916 854 |
9 232 737 |
0 |
RAYMOND MHLABA LOCAL MUNICIPALITY |
86 036 077 |
10 664 307 |
8 878 971 |
0 |
9 965 114 |
7 555 083 |
59 636 909 |
WALTER SISULU LOCAL MUNICIPALITY |
138 606 259 |
10 634 195 |
59 771 861 |
0 |
13 292 532 |
12 707 811 |
52 834 055 |
(a) |
(b) |
(c) |
|||||
MUNICIPALITY |
TOTAL DEBT 30_Sep_2017 |
INTEREST |
CURRENT DEBT |
30 DAYS |
60 DAYS |
90 DAYS |
>90 DAYS |
FREE STATE DEMARCATED PROVINCE |
|||||||
DIHLABENG MUNICIPALITY |
180 180 663 |
7 778 783 |
14 569 059 |
8 839 |
20 812 109 |
19 303 722 |
125 486 935 |
MANTSOPA LOCAL MUNICIPALITY |
108 883 481 |
6 073 916 |
11 363 022 |
0 |
136 829 |
14 222 622 |
83 161 009 |
MASILONYANA MUNICIPALITY |
52 211 702 |
1 491 006 |
3 257 380 |
0 |
4 982 672 |
8 633 701 |
35 337 950 |
MOQHAKA MUNICIPALITY |
208 988 335 |
2 121 533 |
50 004 209 |
0 |
31 607 857 |
31 584 934 |
95 791 336 |
NALA LOCAL MUNICIPALITY |
182 907 109 |
503 670 |
19 559 469 |
0 |
63 016 |
19 976 571 |
143 308 054 |
PHUMELELA MUNICIPALITY |
91 174 674 |
11 407 608 |
3 778 192 |
59 839 |
4 481 108 |
4 601 654 |
78 253 880 |
TOKOLOGO LOCAL MUNICIPALITY |
35 490 407 |
397 632 |
2 575 726 |
0 |
3 105 772 |
5 171 899 |
24 637 009 |
GAUTENG DEMARCATED PROVINCE |
|||||||
EMFULENI LOCAL MUNICIPALITY |
887 902 806 |
16 073 844 |
361 793 520 |
48 399 |
274 406 346 |
208 496 392 |
43 158 149 |
MERAFONG CITY LOCAL MUNICIPALITY |
190 998 296 |
6 661 933 |
48 148 792 |
18 957 |
14 313 275 |
90 307 680 |
38 209 592 |
MOGALE CITY LOCAL MUNICIPALITY |
144 676 691 |
4 549 116 |
51 367 949 |
0 |
93 251 256 |
57 486 |
0 |
RANDFONTEIN LOCAL MUNICIPALITY |
129 670 297 |
6 257 784 |
34 979 634 |
0 |
94 690 663 |
0 |
0 |
WESTONARIA LOCAL MUNICIPALITY |
19 740 642 |
19 509 |
19 664 995 |
0 |
37 574 |
38 073 |
0 |
(a) |
(b) |
(c) |
|||||
MUNICIPALITY |
TOTAL DEBT 30_Sep_2017 |
INTEREST |
CURRENT DEBT |
30 DAYS |
60 DAYS |
90 DAYS |
>90 DAYS |
KWAZULU NATAL DEMARCATED PROVINCE |
|||||||
EDUMBE LOCAL MUNICIPALITY |
10 010 826 |
155 547 |
4 589 779 |
0 |
5 218 004 |
42 456 |
160 588 |
MPOFANA LOCAL MUNICIPALITY |
54 310 218 |
394 313 |
7 062 182 |
0 |
47 248 035 |
0 |
0 |
ULUNDI LOCAL MUNICIPALITY |
80 148 282 |
1 895 049 |
9 790 153 |
0 |
13 606 716 |
12 057 302 |
44 694 112 |
ZULULAND DISTRICT MUNICIPALITY |
1 227 575 |
2 403 |
539 316 |
688 259 |
0 |
0 |
0 |
LIMPOPO DEMARCATED PROVINCE |
|||||||
MODIMOLLE LOCAL MUNICIPALITY |
125 112 498 |
7 928 502 |
11 079 943 |
0 |
13 757 075 |
13 478 997 |
86 796 483 |
MOOKGOPHONG LOCAL MUNICIPALITY |
116 524 854 |
9 243 943 |
6 142 486 |
0 |
7 012 013 |
7 011 834 |
96 358 520 |
MUSINA LOCAL MUNICIPALITY |
108 486 434 |
5 712 634 |
12 913 565 |
0 |
10 890 200 |
12 683 955 |
71 998 715 |
THABAZIMBI LOCAL MUNICIPALITY |
234 082 664 |
18 052 760 |
12 678 566 |
613 799 |
0 |
8 976 294 |
211 814 005 |
(a) |
(b) |
(c) |
|||||
MUNICIPALITY |
TOTAL DEBT 30_Sep_2017 |
INTEREST |
CURRENT DEBT |
30 DAYS |
60 DAYS |
90 DAYS |
>90 DAYS |
MPUMALANGA DEMARCATED PROVINCE |
|||||||
ALBERT LUTHULI LOCAL MUNICIPALITY |
32 604 094 |
1 138 051 |
13 552 319 |
0 |
10 633 117 |
5 474 041 |
2 944 617 |
DIPALESENG LOCAL MUNICIPALITY |
43 090 511 |
1 985 290 |
14 288 462 |
315 662 |
10 737 751 |
7 737 832 |
10 010 804 |
EMAKHAZENI LOCAL MUNICIPALITY |
49 448 289 |
2 170 952 |
6 046 095 |
0 |
5 850 586 |
9 615 724 |
27 935 885 |
EMALAHLENI LOCAL MUNICIPALITY |
1 394 152 980 |
41 896 695 |
91 266 170 |
0 |
133 250 603 |
145 596 329 |
1 024 039 878 |
GOVAN MBEKI MUNICIPALITY |
625 058 977 |
15 680 191 |
61 169 490 |
0 |
81 305 996 |
83 750 718 |
398 832 772 |
LEKWA LOCAL MUNICIPALITY |
419 338 081 |
12 584 465 |
44 370 553 |
790 601 |
49 036 497 |
45 445 515 |
279 694 916 |
MKHONDO LOCAL MUNICIPALITY |
87 115 135 |
3 773 920 |
12 660 480 |
0 |
16 713 987 |
17 065 493 |
40 675 175 |
MSUKALIGWA LOCAL MUNICIPALITY |
142 222 603 |
3 390 920 |
24 270 565 |
0 |
117 952 038 |
0 |
0 |
THABA CHWEU LOCAL MUNICIPALITY |
428 302 648 |
7 861 794 |
34 778 688 |
0 |
19 489 235 |
17 817 195 |
356 217 531 |
VICTOR KHANYE LOCAL MUNICIPALITY |
39 493 244 |
1 289 041 |
10 265 317 |
0 |
14 711 919 |
14 516 008 |
0 |
(a) |
(b) |
(c) |
|||||
MUNICIPALITY |
TOTAL DEBT 30_Sep_2017 |
INTEREST |
CURRENT DEBT |
30 DAYS |
60 DAYS |
90 DAYS |
>90 DAYS |
NORTH WEST DEMARCATED PROVINCE |
|||||||
CITY OF MATLOSANA LOCAL MUNICIPALITY |
213 038 425 |
5 843 412 |
36 505 037 |
0 |
176 291 541 |
241 848 |
0 |
DITSOBOTLA LOCAL MUNICIPALITY |
253 931 599 |
13 839 721 |
20 025 581 |
25 121 |
17 181 418 |
16 473 194 |
200 226 285 |
KGETLENGRIVIER LOCAL MUNICIPALITY |
61 344 312 |
4 565 248 |
7 408 245 |
0 |
4 592 008 |
4 590 027 |
44 754 032 |
LEKWA - TEEMANE |
34 906 738 |
858 489 |
7 952 252 |
0 |
16 693 998 |
4 456 863 |
5 803 625 |
MAMUSA LOCAL MUNICIPALITY |
61 720 073 |
3 516 650 |
3 903 160 |
15 335 |
4 949 245 |
4 585 970 |
48 266 364 |
NALEDI LOCAL MUNICIPALITY |
254 809 233 |
17 819 567 |
10 305 481 |
0 |
23 983 445 |
13 684 245 |
206 836 062 |
RAMOTSHERE MOILOA LOCAL MUNICIPALITY (including Zeerust Waterworks) |
25 011 848 |
1 085 610 |
5 786 046 |
0 |
19 056 027 |
169 776 |
0 |
TSWAING LOCAL MUNICIPALTY |
74 347 281 |
5 578 434 |
8 763 774 |
41 290 |
5 510 089 |
5 848 426 |
54 183 702 |
VENTERSDORP LOCAL MUNICIPALITY |
28 487 985 |
9 961 |
11 028 213 |
0 |
17 063 189 |
396 584 |
0 |
(a) |
(b) |
(c) |
|||||
MUNICIPALITY |
TOTAL DEBT 30_Sep_2017 |
INTEREST |
CURRENT DEBT |
30 DAYS |
60 DAYS |
90 DAYS |
>90 DAYS |
NORTHERN CAPE DEMARCATED PROVINCE |
|||||||
DIKGATLONG LOCAL MUNICIPALITY |
57 144 069 |
4 571 615 |
3 094 917 |
0 |
4 004 001 |
7 394 627 |
42 650 524 |
EMTHANJENI LOCAL MUNICIPALITY |
25 499 235 |
674 932 |
6 679 526 |
160 137 |
8 128 160 |
8 113 536 |
2 417 876 |
GAMAGARA LOCAL MUNICIPALITY |
64 306 601 |
1 535 503 |
21 144 252 |
0 |
13 205 830 |
13 343 265 |
16 613 254 |
GA-SEGONYANA LOCAL MUNICIPALITY |
45 088 792 |
3 087 214 |
15 755 328 |
0 |
10 775 231 |
9 475 887 |
9 082 346 |
KAI !GARIB LOCAL MUNICIPALITY |
117 636 009 |
6 325 057 |
15 786 644 |
0 |
7 642 127 |
7 008 675 |
87 198 563 |
KAMIESBERG LOCAL MUNICIPALITY |
7 071 005 |
277 195 |
953 374 |
96 019 |
970 848 |
760 389 |
4 290 375 |
KHAI-MA LOCAL MUNICIPALITY |
9 646 955 |
356 218 |
940 134 |
0 |
946 180 |
931 858 |
6 828 783 |
MAGARENG MUNICIPALITY |
34 787 020 |
1 975 667 |
2 094 612 |
0 |
2 467 163 |
2 351 992 |
27 873 254 |
NAMA KHOI LOCAL MUNICIPALITY |
86 363 718 |
2 637 868 |
8 514 448 |
0 |
10 416 388 |
8 355 357 |
59 077 524 |
PHOKWANE MUNICIPALITY |
13 477 667 |
204 232 |
10 780 967 |
0 |
409 185 |
395 067 |
1 892 449 |
RENOSTERBERG LOCAL MUNICIPALITY |
51 519 365 |
7 022 946 |
1 606 651 |
0 |
1 849 124 |
1 794 376 |
46 269 214 |
SIYANCUMA LOCAL MUNICIPALITY |
105 818 693 |
7 375 505 |
9 867 262 |
0 |
5 627 054 |
5 639 561 |
84 684 816 |
SIYATHEMBA LOCAL MUNICIPALITY |
23 837 846 |
1 365 590 |
1 885 459 |
0 |
2 209 734 |
2 350 199 |
17 392 454 |
TSANTSABANE LOCAL MUNICIPALITY |
86 966 733 |
5 775 730 |
8 768 969 |
0 |
5 539 969 |
5 678 174 |
66 979 621 |
UBUNTU LOCAL MUNICIPALITY |
37 885 994 |
1 982 834 |
2 129 956 |
0 |
2 342 064 |
2 366 392 |
31 047 581 |
WESTERN CAPE DEMARCATED PROVINCE |
|||||||
KANNALAND LOCAL MUNICIPALITY |
10 152 055 |
132 753 |
10 106 523 |
0 |
45 532 |
0 |
0 |
OUDTSHOORN LOCAL MUNICIPALITY |
19 115 523 |
102 139 |
11 542 110 |
0 |
7 573 412 |
0 |
0 |