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Government owes Free State municipality millions

───   LUCKY NKUYANE 12:56 Fri, 02 Sep 2022

Government owes Free State municipality millions | News Article
PHOTO: Lucky Nkuyane

The Trompsburg-based Kopanong Local Municipality in the Free State is reportedly owed R45 million by the government in rates and taxes.

The municipality has in the past struggled to pay its workers and service providers.

ALSO READ: Workers fear the worst over continued non-payment

According to the speaker of the council, Jerry Moitse, the national government owes the municipality a sum of R25 million, and the remainder is owed by the provincial departments. He says on numerous occasions municipalities are dragged to the committees to explain their shortcomings but yet the same government that always preaches good governance fails to adhere to its own rules and act in accordance.

Moitse tells OFM News that in 2022, the municipality explained to the Provincial Public Accounts Committee (Propac) why the council is experiencing financial problems and that the non-payment of services by departments is the biggest problem.

Meanwhile, the Treasury spokesperson, Andrew Visagie, has confirmed that such could be the case but he is not sure about the exact amount.

Visagie says the provincial government owns buildings across municipalities and some owe rates and taxes in millions. The Provincial Department of Public Works, however, is yet to comment on OFM News’ inquiry.

The Kopanong Local Municipality has since threatened to cut services to schools, libraries, and hospitals. It has admitted that it can cause a great inconvenience to communities. “Since 2016, we have been struggling to get the provincial and national departments to settle their accounts. There has been no change so far. It is very worrying to always hear how Kopanong municipality has no money but it is the same province that owes the council a lot of money.

The committee promised to give feedback within seven days and 6 months later nothing happened. With R45 million, Kopanong can cover five month’s salaries and then the council does not have to use projects' funds to pay salaries,” Moitse says.

Moitse adds that if the government wants to see municipalities improve or change, then everyone must meet their financial obligations. The municipality is one of a few municipalities in the province which failed to submit financial statements for auditing.

The Auditor-General (AG) Tsakani Maluleke's latest report shows the regress in the Free State and it states the municipality has also not submitted financial statements for auditing for the past two years.

ALSO READ: Free State municipalities fail to submit documents to AG

Earlier OFM News reported that this municipality, along with ten others - including the Kopanong Municipality, which includes Trompsburg - failed to pay workers and approached the provincial department, including Treasury and Cooperative Governance (Cogta), for a bailout.

ALSO READ: Eleven Free State municipalities beg for bailout

In her report this year, Maluleke said the irregular expenditure in the province has increased from R7,63 billion to R9,18 billion. She said the audit outcomes of the province regressed over the term of the previous administration and that this is because the municipal Public Accounts Committees (MPAC) did not perform timeous investigations.

Earlier, the municipality confirmed owing the water utility, Bloem Water, over R300 million.

ALSO READ: FS municipality confirms owing millions to Bloem Water

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