Consumers owed municipalities 255.4 billion rand by the end the financial year through June 30, compared with 232.8 billion a year earlier, according to data the National Treasury published on Friday. Households account for 71% of this. Of the outstanding debt, 86% is older than 90 days and may therefore not be realistically collectible.
South African city councils struggle to collect payments for services from consumers and in turn can’t pay their suppliers. That’s led to state-owned power utility Eskom Holdings SOC Ltd. threatening to cut off electricity until it’s paid, including a warning last week to the City of Tshwane, which includes the nation’s capital, Pretoria, that it will be disconnected.
Municipalities owed their creditors 89.7 billion rand by June 30, up from 81.1 billion at the end of March, according to the Treasury. Town councils’ debt to Eskom alone was
Not unlike land invaders, many citizens are living free off the backs of those who pay their rates, taxes and utility bills. When are any of the political parties going to address such illegal behaviour? Are they scared they are going to lose votes?