RESIDENTS, government and businesses who owe money have pushed the Nelson Mandela Bay's overdue debt up by about R370-million, weakening the city's ability to deliver services.
The debtors include six major companies who have taken the city to court in protest against high electricity tariffs.
These, together with a go- slow by staff in the municipality's treasury department, have pushed the city's revenue collection rate down to 92% – three points lower than its target.
The staff have a long-standing dispute with the municipality over salary grading.
A task team set up by Finance Minister Pravin Gordhan to help manage the city's finances will help the municipality to come up with a plan to help officials get the money.
The municipality is owed a total of about R1.9-billion in outstanding debt.
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