Madibeng owes creditors R1.3 billion
While residents fear a blackout in Hartbeespoort due to Madibeng Municipality’s failure to pay its outstanding debt of R129 million to the City of Tshwane, the Madibeng Council heard this week that the municipality owes its creditors over R1.3 billion.
During an ordinary meeting of the council of the Madibeng Municipality on Tuesday, budget statements were presented detailing the staggering amounts owed to creditors and the even more shocking amounts owed to Madibeng by its debtors.
According to the first quarter budget statement ending 30 September, Madibeng owes Eskom R1.1 billion, the City of Tshwane R106.3 million, Rand Water R7.7 million and the Department of Water and Sanitation R69.1 million.
Madibeng is owed a shocking R3.6 billion by debtors. In September, the municipality billed customers over R56 million and the payment rate was only 54%.
According to the budget statement, the contract with the municipality’s current debt collectors has expired and the municipality is in the process of appointing new debt collectors.