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Chris Hani District Municipality (CHDM) is owed over a whopping R2 billion as of the end of March by government, businesses, and households while the municipality has not paid invoices totalling over R29 million, with some of these older than 90 days.
This is contained in a Section 52 (d) report of the Municipal Finance Management Act for the period ending March 31, the third quarter of the municipal financial year.
Acting executive mayor Thembisile Bobo said government departments’ debt was R135 million in February and R136 million in March.
Businesses owed a combined R156 million in February while the March bill went to R160 million.
Households shortchanged the municipality by R1.8 billion in February and March.
“The total gross debtors outstanding as of March 31, 2024, is R2.20 billion, which represents an increase of 2.24 percent in March 2024 when compared to the previous month of February 2024,” Bobo said.
“The debt has increased due to the desktop data cleansing exercise (correcting tariffs and debtor types) that’s currently being implemented by the billing unit. All consumer debtor types have increased during this month.”
The municipality is owed a total of R379 million in interest on water, basic water, and sanitation.
Debt of water and sanitation per municipality stands at:
·R18 million for Enoch Mgijima Local Municipality;
·R2.6 million for Sakhisizwe;
·R3.5 million for Emalahleni;
·R14.5 million for Inxuba Yethemba;
·R1.6 million for Intsika Yethu; and
·R743 000 for Dr AB Xuma.
One of the main cost drivers of the district authority is fuel, which was budgeted for at R27.94 million. A total of R8.67 million remains until the end of the financial year on June 30.
“It is evident that fuel plays a big role in ensuring that services are delivered to our communities effectively. We are bleeding in fuel but there are remedial measures to curb overspending,” Bobo said.
He said municipal management had moved the fleet management unit to the budget and treasury office to curb excessive use of fuel.
Of the R37.40 million set aside for electricity for the current financial year, 9 percent remains for the remainder of the financial year.
The municipality budgeted R28.70 million for water with R18.78 million remaining in its coffers.
Money spent on legal costs is R6.8 million of the budgeted R7 million.
“Additional funding will be required for the legal fees as the municipality received a court order to pay at least R1.3 million per month until the end of November 2024,” said Bobo.
He said the balance of invoices still to be paid was at R29.6 million with 32 percent between zero and 30 days.
The other invoices were:
·31 to 60 days at 5 percent;
·61 to 90 days at 7 percent and
·Over 90 days at 56 percent.
The municipality budgeted R309 million and spent R295 million on the municipal infrastructure grant year-to-date (YTD), R203 million on the rural bulk infrastructure grant with a YTD expenditure of R154 million, and of the budgeted R25 million of the water services infrastructure grants spent R12 million YTD.
