Municipality, govt departments in dispute over R1bn debt

A dispute has erupted between Bushbuckridge local municipality and the two government departments which reportedly failed to pay their debts of about R1 billion.

- Masoka Dube

Bushbuckridge municipal spokesperson Fhumulani Thovhakale said out of the about R1 billion outstanding payment for the services, the provincial department of public works, roads and transport (DPW) owed R675 million, while the department of rural development and land reform owed more than R327 million.

"Money owed to the municipality affects delivery of services to the communities and weakens the municipality's ability to function," said Thovhakale.

He said the municipality would continue implementing its credit control and debt management policies to recoup the outstanding funds.

DPW spokesperson Bongani Dlamini said he was aware of the debts, but denied that the department owed R675 million.

"The amount owed is R188 million. The department is currently consolidating all debts and making payment arrangements," said Dlamini.

Political head of the DA in Bushbuckridge, Tersia Marshall, said: "We condemn this failure to settle municipal debt, which has compromised the ability to deliver essential services, particularly water and road maintenance.