Gauteng municipal bad debt jumps by R1 billion in one quarter
Debt older than 60 days, which can be viewed as bad debt, owed to municipalities in Gauteng grew by a billion Rand, or R1 036 721 000 precisely, between 1 July 2013 and 30 September 2013.
According to the Gauteng Provincial Gazette published on 8 November 2013, Gauteng municipalities were owed a total of R39.7 billion at the end of September. This figure includes all debtors.
What is of concern is debt older than 60 days as this debt proves to be difficult to collect. It has grown from R29.7 billion at the end of June 2013 to R30.7 billion at the end of September, a growth of 3,5% compared to the previous quarter. This means that 77% of all debt owed to municipalities in Gauteng is older than 60 days.
Debt owed to the three metros constitutes 83% of debtors in arrears by more than 60 days. Debt older than 60 days owed to the Gauteng metros are as follows:
Johannesburg: R13 772 639 000 (78% of total debtors)