Gauteng municipalities have lost R4bn in just two months because of the Covid-19 pandemic and countrywide lockdown
The hardest-hit municipalities are the three metros of Tshwane, Johannesburg and Ekurhuleni, which lost a combined R3.5bn in uncollected revenue.The big losses have resulted in fears that municipalities will default on their payments, with some already failing to pay Eskom and water utility Rand Water.
“Tshwane lost approximately R1.2bn in revenue not collected, Johannesburg R1.5bn and Ekurhuleni roughly R800m. Municipalities make money by collecting from businesses and residents, and with the closure of the economy forced by the lockdown since March, collections have been hit hard.He said he has since met with all Gauteng mayors to find a solution and they have resolved to meet the entities owed, including Eskom and Rand Water, to find a way to resolve the payment issues.
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