Debtors owe Kouga Municipality R 149 Million

THE cash flow of Kouga Municipality remains constrained, but after three months of being in control, the DA is satisfied that the municipality is a going concern and in no immediate danger of becoming bankrupt.

“The outstanding debtors (money owed to the municipality) as at the end of October 2016 amounted to R149 million,” said Kouga Mayor Elza Van Lingen.

“Of particular concern is that R82 million of this debt is older than a year and will probably prove difficult to recover.

The ageing analysis reveals that debtors of R25 million are fewer than 30 days, with R20 million being between 61 and 90 days,” added Van Lingen.

Revenue enhancement remains a critical area for the municipality and is receiving attention, according to the Mayor.

The outstanding creditors’ balance as at the end of October was R87 million, with creditors of fewer than 30 days totalling R24 million.

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“It is a requirement that a municipality pays all its creditors within 30 days, something that is obviously not happening in Kouga at present.

The majority of creditors are other government institutions such as the Department of Transport (R11 million), Eskom (R15 million; current account), and Nelson Mandela Bay Metro (R46 million).

The municipality received a significant bulk water bill in May 2016. According to the Nelson Mandela Bay Metro, Kouga Municipality was incorrectly billed between December 2012 and April 2016.

We are investigating the matter but are required to include the amount in our creditors at this point in time,” concluded Van Lingen.

True Technologies Aug

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