MEC Motshidisi Koloi has revealed that despite the fiscal constraints and the reoccurring shortfall, the department paid this money towards water, refuse and electricity, amongst others. The statement comes after the troubled Mangaung Metro and its power utility Centlec previously embarked on a mission to disconnect various departments and other private companies from their water and electrical grid due to money owed to them. 

During the Free State Legislature's sitting in the Fourth Raadsaal in Bloemfontein, MEC Koloi revealed that R458,5 million has been paid for municipal rates and taxes as of 31 March 2022, which translates to 100% expenditure in the allocated budget.

OFM News previously reported that millions in debt, owed by various provincial departments to service providers, and the state of infrastructure will on Thursday be under the spotlight during the budget speech by MEC Koloi.

Also Read: Free State Public Works to table budget

“Of these amounts, R278 million was paid to the Mangaung Metro; R107 million to Centlec; R170,4 million to Matjhabeng, and R62,5 million to the Maluti-a-Phofung Municipality. For the 2022/23 financial year, a total of R201,5 million is budgeted for municipal services and R480,6 million is budgeted for rates and taxes,” she says.

MEC Koloi adds that the troubled metro, its power supply entity Centlec, Welkom-based Matjhabeng, and the Qwaqwa-based Maluti-a-Phofung municipalities remain the biggest beneficiaries of this budget.

“Madam Speaker, all the municipalities were paid rates and taxes for 2021/22 in full, including Mangaung Metro. We, however, acknowledge that we have arrears from the previous years on the rates and taxes due to the Mangaung Metro,” she further adds.  

Koloi’s department is understood to be responsible for the buildings that houses various departments. Some of these departments owe for water and electricity, with debt running into millions of rands.

Following the engagements between the Office of the Premier, Sisi Ntombela, and Centlec Management, the Provincial Government committed to pay Centlec R90 million monthly to try and settle its debt in arrears.

Several government departments in the province owe the power utility over R200 million. 

Meanwhile, the Metro, which is reportedly owed millions of rands by the provincial government, which includes various departments, also went on a drive to try to recoup millions of rands owed to it by defaulters.

OFM News