We are owed R9.2bn, says public works minister Patricia de Lille

Public works and infrastructure minister Patricia de Lille has called on South Africans to improve the culture of payment.

“It is not only Eskom that is owed money. We are also owed money,” De Lille said on Tuesday.

The revelations were made during a media briefing on progress over the past year on projects in the infrastructure investment plan following President Cyril Ramaphosa’s recent state of the nation address.

Speaking about the City of Tshwane’s drive to cut off services to its debtors, De Lille said the department’s CFO and his team have been engaging with all municipalities to resolve payment matters.

She said the disconnection of services experienced by government client departments were a result of private landlords who are not paying the municipality for services, rates and taxes.

“The department of public works and infrastructure (DPWI) has processed payments to the value of R464m to the city since April 2021 to date in line with invoices received for this period.”

Over and above what has been paid to the city, she said the department has paid R1.5bn for property rates and R2.3bn for municipal services for the current financial year.

“Some of the known disputes that are being addressed with municipalities through constant engagements include non-allocation of payments made to municipalities, transfer or change of ownership on properties from the municipalities to the department and disputes over interest charged due to payments not allocated timeously by municipalities.”  

In relation to Eskom, De Lille said: “The department has paid Eskom R417m since April 2021. All our accounts are in good stead but our problem as a department is that we pay on behalf of government departments and they are supposed to reimburse us.

“At January 31 2022 the total debt (15 clients) owed to DPWI is R9.205bn. We must improve the culture of payments, from the top down to the ordinary man on the street.

“The top 15 client departments owe 98% of the total debt. Included in the total debt is R4.703bn relating to disputes.”

De Lille said her department has tried to meet clients directly and sent letters to the ministers, and the director-general (DG) met with DGs from other departments.

“We are trying hard to recover this money. It is not only Eskom that is owed money. We are also owed money.”

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