Low collection rate criticised

A TOTAL of R44.1-million has been billed to the six local municipalities under the Chris Hani District Municipality (CHDM) for water and sanitation services for the first financial quarter ending September 30.

Water charges amount to R32.8-million and sanitation services to R11.3-million, it was revealed during a council meeting on Wednesday, when chief financial officer Nomfundo Fetsha indicated her displeasure with the collection rate.

“The increasing debtors balances by each municipality is evident from the low collection rates,” Fetsha said.

“Comparing actual billing [with] amounts collected at September 30 this year is yielding an average collection rate of 13.5%.”

Enoch Mgijima, separated as Lukhanji, Inkwanca and Tsolwana on the item, contributed R16.5-million for water and R5-million for sanitation services, Inkwanca R1.7-million for water and R724000 for sanitation services and Tsolwana R986000 for water and R624000 for sanitation services.

Amounts collected in Sakhisizwe included R2-million for water and R633000 for sanitation services; in Emalahleni, R2.3-million for water and R957000 for sanitation services, and in Inxuba Yethemba, R10.2-million for water and R3-million for sanitation services.

Intsika Yethu contributed R1.3-million for water and R537000 for sanitation.

The total operating expenditure of the district authority was R226.2-million against the budgeted expenditure of R303.6-million.

There was an operating surplus of R74.9-million when comparing actual revenue with actual expenditure.

“When taking into account the effect of non-cash items of depreciation and debt impairment, a surplus of R156.5-million is realised,” the agenda item highlighted.

A total 70% of the capital conditional grants had been spent at R144.1-million.

Leave a Reply