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Municipal rates & taxes under spotlight

───   LUCKY NKUYANE 12:41 Wed, 07 Sep 2022

Municipal rates & taxes under spotlight | News Article

The Free State Department of Public Works vows to pay all rates and taxes to owed municipalities that have been struggling with issues of service delivery and paying service providers.

The departmental spokesperson, Mlungisi Maqubela, tells OFM News that the department is currently in the process of finalising the 2022/2023 new property rates, and as payments for July, August and September will be made as soon as the rates are agreed upon.

OFM News previously reported that the Trompsburg-based Kopanong Local Municipality which has had issues with service providers lashed at the national and provincial government over the R45 million debt owed to it.

ALSO READ: Government owes Free State municipality millions

However, Maqubela says property rates for all 18 local municipalities have been paid in full until the end of June 2022.

“Kopanong Local Municipality Property Rates have been paid up to the 30 June 2022. The Department is currently in the process to finalize the 2022/2023 new Property Rates, thereafter payments for July, August and September will be processed as soon as the rates are agreed upon. "Before payments for the new financial year (From 1 July each year), a reconciliation and verification are performed to ensure that the correct rates are paid. This process involves an exchange of documentation and engagements between the officials of the department and the relevant municipality. Once the reconciliation is finalized invoices are submitted for payment,” Maqubela adds.

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

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

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