KwaZulu-Natal Department of Education owes the eThekwini Municipality more than R330 million for rates and services

KZN Education Department owes eThekwini Municipality R330 million. | Supplied

KZN Education Department owes eThekwini Municipality R330 million. | Supplied

Published Jan 24, 2022

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DURBAN - The DA in eThekwini has called for action against government departments and entities that owe the city millions of rand.

Party caucus leader Nicole Graham said she would write to provincial Scopa (Standing Committee on Public Accounts) chairperson Maggie Govender and ask her to deal with errant departments.

Graham said in total the government was owing the city almost R1 billion in rates and services. The DA listed the education department, Public Works and Ithala Development Bank as the worst offenders, saying this was revealed in the recent city executive committee meeting.

“By far the biggest transgressor is KZN’s Department of Education with more than R330 million outstanding. This department is followed by KZN Public Works – a habitual offender – at R164 million. Other major contributors to the staggering debt are the province’s departments of health and human settlements,” said Graham.

She added that Ithala owes the city almost R6 million, saying what is worrying is that the entity collects rents from its business premises but does not pay the city for rates and services and that has affected the tenants when the city disconnects water and electricity.

“It has now come to light that the city is disconnecting services to these Ithala-owned properties, literally leaving tenants in the dark.These are the very same tenants who pay rent to Ithala and who are ultimately assisting in building the provincial economy and creating jobs. This is the very same Ithala that the ANC continues to push to become the first state-owned bank. Clearly, as with the vast majority of other state owned entities, Ithala is just another failed project and nothing more than bottomless money.”

She said the DA would also submit written parliamentary questions to all other provincial departments requesting a breakdown of monies owed to the city of eThekwini.

Education spokesperson Muzi Mahlambi said the department was aware of the matter and is in talks with the municipality.

Daily News