Free State Finance MEC Gadija Brown says they are determined to reduce government debt for rates and taxes at various municipalities across the province.
This comes after the Mangaung Metro cut water supply at various government premises in Bloemfontein over unpaid services.
80% of Free State municipalities are in a financially vulnerable position:
The Mangaung Metro is owed almost two billion rands by government departments and entities.
Brown says they have entered into a payment plan in a bid to reduce the debt.
“We have reduced the debt so what we owe on rates and services is R680 million and then to Centlec 275 million (rand). But what we have also done across all the municipalities because this was not only Mangaung Metro across all the municipalities, we have further budgetted 1.6 billion for the new financial year. Not only to ensure that the current account is paid up but also the previous debt.
Brown says, “In order to conclude our obligations as the provincial government, I think with the next financial year the balance including the previous debt should be 1.9 million, so we have got 300 million short of that and we see through the adjustment budget how to deal with that.”
