Cape Town battles with state debts

[BTTB]

And any road upgrades in the suburbs of Cape Town have been put on the back burner because of the poor cash flow as mentioned in this thread and the herculean task the City has taken on in road infrastructure in lieu of the Soccer World Cup in June of this year, only benefiting the Central parts of Cape Town though.

 

[semiautomatix]

Why was the city not able to accomodate the change in structures? I have not seen any mention of this scenario elsewhere in the country, so I have theory regarding this.

The DA being in control of the city at the time, thought they had a good chance of winning the WC and thus refused to make the simple change that all other municipalities made. So IMO, this is a political hot potato created by the DA themselves. Just my opinion...

We will see what the AG says. But if all other Municipalities complied with the change and only CT did not, it seems it was a political play by the DA which backfired.

No, what was said is that they wouldn't change the account holder until all debts were paid off.

Has any municipality ever changed accounts for a property when your debt are in arrears? No. It is policy and it applies to every damn entity in this country - including yourself.

 

[sox63]

No, what was said is that they wouldn't change the account holder until all debts were paid off.

Has any municipality ever changed accounts for a property when your debt are in arrears? No. It is policy and it applies to every damn entity in this country - including yourself.

Thats not what is written in the article. Or perhaps you dont see the difference between Account Holder and People responsible for the account?

I do some contracting in the regions and if its an extended project, I would have to hire a flat, in my name, however the people responsible for paying the account is the company I worked for. Another example is a student is registered at a varsity, however the parents/bursary are responsible for the account.

 

[JungleBoy]

It's not bloody about that! It's about whether the National government owes money to the City of Cape Town, as well. The DA aren't saying they need to pay part of the debt, they just don't believe they should pay all of the debt. Jislaaik people, stop arguing the same wrong point.

The national gvt has handed down to the provinces the responsibility of settling municipal accounts. So, regardless of who created the debt, the provinces are now liable. At least that is my understanding.

 

[Sherbang]

It's not bloody about that! It's about whether the National government owes money to the City of Cape Town, as well. The DA aren't saying they need to pay part of the debt, they just don't believe they should pay all of the debt. Jislaaik people, stop arguing the same wrong point.

Richardson said the national government had paid everything it owed, but that money went to arrears service charges owed by the province.

(Richardson is the Chief Financial Officer for the DA led city of CT)

 

[semiautomatix]

The national gvt has handed down to the provinces the responsibility of settling municipal accounts. So, regardless of who created the debt, the provinces are now liable. At least that is my understanding.

No. The account was never changed because the National Government still owed money (much like the City would do for any of it's citizens). As such there is a debate about how much each entity owes.

 

[semiautomatix]

Thats not what is written in the article. Or perhaps you dont see the difference between Account Holder and People responsible for the account?

I do some contracting in the regions and if its an extended project, I would have to hire a flat, in my name, however the people responsible for paying the account is the company I worked for. Another example is a student is registered at a varsity, however the parents/bursary are responsible for the account.

The government has to pay rates and service charges like all property owners, and until July 2008 the national Department of Public Works was responsible for the payment of all accounts. From that date, it was decided that payment of service charges would be devolved to provinces, Richardson said.

The city was not prepared to change the details of parties responsible for accounts until all arrears had been paid off.

Then please explain the above two paragraphs.

The National Goverment was the account holder and that hasn't changed because they have failed to settle their debts. It has, from what I gather, since been rectified. However, the DA is arguing that the arrears charges are the problem of National Government, whose responsibility it was to pay those accounts and failed to do so on time. The arrears amount is the issue here people, and the province has a right to demand that amount from the National Government since it was them who failed to pay on time.

 

[sox63]

Then please explain the above two paragraphs.

The National Goverment was the account holder and that hasn't changed because they have failed to settle their debts. It has, from what I gather, since been rectified. However, the DA is arguing that the arrears charges are the problem of National Government, whose responsibility it was to pay those accounts and failed to do so on time. The arrears amount is the issue here people, and the province has a right to demand that amount from the National Government since it was them who failed to pay on time.

The article states that NDPW paid the accounts, but question is whose name is on the lease? ie The account holder???

If the lease was in the name of national goverment, and not the provincial goverments, I can bet you those idiots at the ANC would have had the DA Provincial goverments on the streets looking for alternative office space.

 

[Sherbang]

It's the city's fault!

The city was not prepared to change the details of parties responsible for accounts until all arrears had been paid off.
"That's where the problem arose. Province did not have money at the time, and the longer it was left, the more complicated it got."

(that's only half tongue in cheek!)

 

[semiautomatix]

It's the city's fault!

(that's only half tongue in cheek!)

Well perhaps there is that, but they were only doing what is policy. Anyone who has ever sold a house knows that the city will not just transfer your account.

However, whilst is was not in the Provincial Government's name it incurred further expenses - which the National Government claims is the responsibility of the Provincial Government, this despite the fact the Provincial Government never received the bill.

 

[semiautomatix]

The article states that NDPW paid the accounts, but question is whose name is on the lease? ie The account holder???

If the lease was in the name of national goverment, and not the provincial goverments, I can bet you those idiots at the ANC would have had the DA Provincial goverments on the streets looking for alternative office space.

It may be the fault of the City for creating this ambiguity, but they were just following policy.

It may be the fault of the Province, but they possibly never received the account for these rates. And when they did it was massively in arrears.

It may be the fault of National Government, since this was there account. However, they enacted a policy change for all provinces but it conflicted with the city accounting policies.

There is no clearcut solution here and that is why the AG must be called in to give an independent view.

 

[JustAsk]

hehehe...

the popcorn was nice.

 

[Phenom]

They are polishing the roads with pork here, every week, we have this team 10 people walking down my suburban road, even on a rainy day when the streets are shiny clean, these people are sweeping the road as if it is some expensive telescope, picking those tiny little weeds out of the pavement as if anyone ever noticed they were ther to begin with. this is a big waste of cash. could only wish that they were rather busy at laying fiber optic cables instead.

 

[semiautomatix]

They are polishing the roads with pork here, every week, we have this team 10 people walking down my suburban road, even on a rainy day when the streets are shiny clean, these people are sweeping the road as if it is some expensive telescope, picking those tiny little weeds out of the pavement as if anyone ever noticed they were ther to begin with. this is a big waste of cash. could only wish that they were rather busy at laying fiber optic cables instead.

And if the streets were filthy, then you'd complain too? Just be thankful they're keeping the city clean and people employed.

 

[Phenom]

And if the streets were filthy, then you'd complain too? Just be thankful they're keeping the city clean and people employed.

Why not rather employ them to lay those FIOS cables?

The streets were shiny clean as they always are, the rain usually sweeps the dust away. It's not my obligation to keep people employed, and especailly when they don't even have education first. If 10 people spend 10 minutes in front of my place alone, that makes R10x10, R100 a month, R1200 a year. im sure that at these costs they could have got us all uncapped hsdpa by now, Sweeden charges R100 for 7.2mbps uncapped

 

[krycor]

You should take that up with your local councillor/rep or .. if you live where the community & businesses has taken over it.. with them.