Head office of Cape Town in the CBD of Cape Town.
PHOTO: Duncan Alfreds, News24
- Cape Town residents and businesses owe the City of Cape Town R7.5 billion in fares and services.
- Government entities owe the city R97 million.
- HowEver, the city has a payment ratio of about 97%, which means most ratepayers are able to pay their bills.
Cape Town residents and businesses owe the City of Cape Town R7.5 billion in fares and services at the end of April.
Most of the debt due, but not yet due, relates to residential properties at R5.2 billion, followed by commercial properties at R1.8 billion and other debts at R450.2 million.
“There is an increase of R248.5 million in our total debt for April 2022 compared to March 2022, due to an increase in debt in the 60 day, 90 day, 150 day and over 150 day categories. , as well as increased billing,” said Siseko Mbandezi, a member of the municipal finance committee.
“While there is an increase in debts, it is not a significant increase for April 2022. One has to look at these debts over a two month period as the debt management measures taken/instituted in April 2022 will show the increase in payments during the following month (May/June).”
The government also struggled to settle accounts. The total amount outstanding for government entities, as of April 30, was R97 million.
The City specifies in its financial follow-up report:
The government accounts reflect an overall credit of R31.2 million due to a further reduction in the credit of the Ministries of Transport and Public Works and an increase in the debt of the Ministries of Education, Health , human settlements and cultural affairs and sports.
He said relevant departments were engaged to settle overdue accounts and monthly meetings had been scheduled with relevant departments and the provincial treasury.
Mbandezi said the city had an excellent payment ratio of around 97%, indicating that most taxpayers were able to pay their bills.
READ | Cape Town cancels debts worth R4 billion
“Without revenue from fares and services, we would not be able to provide services and we thank the residents who pay their bills,” he said.
STOP COCT founder Sandra Dickson said the total outstanding amount of R7.5 billion owed to the city was lower than a year ago due to the city’s cancellation of debt .
“However, the City is committed to strictly following its debt collection policy, which includes the compulsory sale of property to collect municipal debts. The total debt written off by the City since 2021 amounts to a little over R2 billion.
“It should be noted that R1.27 billion was interest charged on accounts that were written off,” she said.
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