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State departments owe Joburg R195m

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National and provincial government departments owe the Johannesburg City Council, Johannesburg Water and City Power a staggering R195-million.

But the private sector and corporate world owes even more than that - some of it has been outstanding for years - although the municipal authorities are at present unable to quantify the debt owed by businesses.

The government departments owe money for basic services, assessment rates, interest and legal fees. The departments of health, housing, education, public works, social development and transport, as well as the SAPS are cited as owing the money.

According to official council figures supplied to Saturday Star, The City Of Johannesburg is owed just over R115,3-million by national and provincial governments. Of that total, central government owes just over R79,4-million, while the provincial government owes R35,9-million.

Johannesburg Water is owed R71,6-million by government departments, but officials were unable to give a breakdown.

City Power is owed just over R8,2-million by government, all of it by provincial departments.

Council spokesperson Virgil James said yesterday: "Money owed to the council did not occur overnight, it has occurred over a number of years."

The council has established the Portfolio Management Unit (PMU) which came into operation in September last year, to focus on the collection of all money owed to it.

"The PMU engages clients daily by calling them, sending them reminder letters, making appointments to discuss accounts and debt payment arrangements," James said. Payment levels had improved substantially.

He added that a forum has also been established to facilitate the resolution of government owed debts. He said the provincial government paid R64-million in January, R10-million in March and a further R11-million was expected this month.

As far as the private sector was concerned, James said: "Almost 1 000 interviews have been held with the corporate and business sectors since January and some companies have arranged to clear outstanding debts."

But, the leader of the DA in the Johannesburg Council, Mike Moriarty, said: "It seems as though the council is letting both the central and provincial governments off easier than their other debtors."

James disagreed with this, saying that council treated all its debtors the same way.